Mindspace REIT acquires commercial property in Hyderabad for ₹2,038 crore
Mindspace Business Parks REIT announced today the acquisition of Commerzone Raidurg, a Grade-A commercial property in Hyderabad’s Madhapur area, for ₹2,038 crore. The deal involves purchasing 100 per cent equity shareholding in Sustain Properties Private Limited, which owns the 1.82 million square feet property.
The shares of Mindspace Business Parks REIT Limited were trading at ₹373.20, down by ₹0.87 or 0.23 per cent on the NSE today at 12.25 pm.
The property is fully leased to Qualcomm, a Fortune 500 company, with a weighted average lease expiry of approximately 12 years. The acquisition price represents a 7.5 per cent discount to the average of two independent valuations.
To partially fund the acquisition, Mindspace REIT will 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 approximately ₹613 crore.
The acquisition will increase Mindspace REIT’s portfolio size from 34.8 million square feet to 36.6 million square feet and boost its committed occupancy from 91.5 per cent to 92 per cent. The company expects the acquisition to add approximately ₹167 crore to its FY25 Net Operating Income on a proforma basis, representing an 8.2 per cent growth.
The transaction aligns with Mindspace REIT’s growth strategy and strengthens its presence in Hyderabad’s largest micro-market, taking its portfolio size in the city to approximately 15 million square feet.
