Realty Firm Mindspace Business Parks REIT Acquires Three Prime Commercial Properties From Sponsor K Raheja Corp For ₹2,916 Crore

New Delhi: Realty firm Mindspace Business Parks REIT has acquired three prime commercial properties from its sponsor K Raheja Corp for Rs 2,916 crore as part of its strategy to expand its portfolio.Mindspace REIT, sponsored by realty firm K Raheja Corp, currently has a portfolio of 38.2 million square feet of commercial space and the same will expand to 39 million square feet after the completion of the acquisition of these three assets.

In a regulatory filing on Friday, the company said it has acquired three prime CBD (central business district) assets for Rs 2,916 crore from K Raheja Corp.The Board of the Manager to Mindspace REIT has approved the acquisition and preferential issue of units aggregating up to Rs 1,820 crore, subject to unitholders and other regulatory approvals.

Apart from preferential issue of units, the company would assume liabilities worth nearly Rs 1,100 crore, which includes debt of Rs 970 crore.Elaborating on the acquisition, Mindspace REIT said it has acquired Pramaan Properties Pvt Ltd, which owns 0.45 million square feet commercial space at Worli in Mumbai and an office building spread across 0.1 million sq ft located in Pune.

It also acquired Sundew Real Estate Pvt Ltd, which owns around 0.2 million square ft of premium office space in Mumbai.These acquisitions collectively represent around 0.8 million square feet of premium leasable area, valued at a Gross Asset Value (GAV) of Rs 3,106 crore by independent valuers."The acquisition will be completed at a Rs 2,916 crore gross acquisition price, representing a 6.1 per cent discount to the average of two independent valuations," the company said.

Ramesh Nair, MD and CEO of Mindspace REIT, said, "Bringing these assets into the Mindspace REIT portfolio is a strategic step in strengthening our presence in Mumbai's most sought-after CBD office districts".These are high-quality, institutional assets, with strong cash flows, he added."For us, it's straightforward - invest in great locations, work with great tenants, and create durable value for our unitholders," Nair said.

Mindspace REIT existing portfolio consists of 5 integrated business parks and 6 independent office assets across Mumbai region, Pune, Hyderabad and Chennai.Earlier this month, Mindspace Business Parks REIT reported a 26 per cent increase in its net operating income (NOI) to Rs 634 crore for the second quarter of this fiscal year.Its NOI stood at Rs 504 crore in the year-ago period.The company also declared that it will distribute Rs 355 crore to unitholders for the second quarter of this fiscal year, up 16.3 per cent from Rs 305 crore in the year-ago period.

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