Mindspace REIT acquires 0.24 million square feet leasable office space in Chennai for Rs 181.6 crore

Mindspace Business Parks REIT on Saturday said it has acquired 0.24 million square feet of leasable office space in Chennai for Rs 181.6 crore as part of its expansion plan.

This strategic acquisition helps Mindspace REIT consolidate its ownership in the project.In a regulatory filing, the company said it has concluded a successful acquisition of around 0.24 million square feet of leasable area at Commerzone Porur in Chennai for Rs 181.6 crore.

Mindspace REIT, through its asset special purpose vehicle (SPV), now owns 100 per cent of the project with a total leasable area of about 1.1 million square feet.

The name of the seller was not disclosed.With this acquisition, Mindspace REIT's total leasable portfolio area grows from 32.1 million square feet to 32.3 million square feet.

The deal was funded through debt. Vinod Rohira, Board Member, K Raheja Corp Investment Managers Pvt Ltd, Manager to Mindspace REIT, said, "This strategic acquisition aligns perfectly with our overarching strategy to exercise complete and comprehensive control of our assets, enabling holistic planning and decision-making across the portfolio."

The quality office property, located in one of the prominent micro-markets of Chennai, is currently occupied by marquee global MNCs as well as domestic clients, and this acquisition provides us with enhanced leasing options, he added.

Mindspace Business Parks REIT, sponsored by K Raheja Corp group, was listed on the Indian bourses in August 2020.The REIT owns office portfolios in the Mumbai Region, Pune, Hyderabad and Chennai.

The pro-forma portfolio has a total leasable area of 32.3 million square feet comprising 26.1 million square feet of completed area, 2.5 million square feet area under construction and 3.7 million square feet of future development.

The portfolio consists of 5 integrated business parks and 5 independent office assets.