Mindspace REIT Acquires ₹2,038 Crore Commercial Property in Hyderabad.

Mindspace Business Parks REIT has announced the acquisition of Commerzone Raidurg, a Grade-A commercial property located in Hyderabad’s Madhapur area, for ₹2,038 crore. The deal involves purchasing 100% equity stake in Sustain Properties Private Limited, the owner of the 1.82 million square feet property.

The property is fully leased to Qualcomm, a Fortune 500 company, with a weighted average lease expiry of approximately 12 years. The acquisition price reflects a 7.5% discount to the average of two independent valuations.

To partially fund the acquisition, Mindspace REIT plans to issue up to 16.17 million units at ₹379.08 per unit through a preferential issue, subject to unitholder and regulatory approvals. The total purchase consideration for the equity shareholding is about ₹613 crore.

This acquisition will expand Mindspace REIT’s portfolio from 34.8 million square feet to 36.6 million square feet and increase its committed occupancy rate from 91.5% to 92%. The company projects the deal to add approximately ₹167 crore to its FY25 Net Operating Income on a proforma basis, representing an 8.2% growth.

The acquisition is in line with Mindspace REIT’s growth strategy and enhances its footprint in Hyderabad’s largest micro-market, bringing its portfolio size in the city to around 15 million square feet.

HBL