Mindspace REIT Acquires Sustain Properties for Rs 2,038 Crore

Mindspace Business Parks REIT has acquired Sustain Properties, which owns a substantial office space in Hyderabad. The acquisition is valued at Rs 2,038 crore and aims to expand Mindspace's rent-yielding portfolio. The transaction includes issuing Mindspace REIT units to Sustain's shareholders and is expected to close by March.

Realty firm Mindspace Business Parks REIT has strategically acquired Sustain Properties—home to a notable 18.2 lakh office space in Hyderabad—at an enterprise value of Rs 2,038 crore. This move is in line with Mindspace's ambitious plan to enhance its rent-generating portfolio.

With this acquisition, Mindspace REIT will take full control over Sustain Properties Pvt Ltd, valued at an equity of Rs 613 crore. Shareholders of Sustain will receive units in Mindspace REIT as part of the deal, projected to finalize by the end of March.

This significant step, approved by the Mindspace REIT board, involves issuing up to 16,168,090 company units on a preferential basis at Rs 379.08 per unit, effectively transferring complete equity shareholding. The acquisition of 'Commerzone Raidurg', leased to Qualcomm, reflects Mindspace's focus on strategic investments in high-quality assets.

(With inputs from agencies.)