Mindspace Business Parks REIT Expands Footprint with Major Chennai Acquisition

Mindspace Business Parks REIT secures a 26 lakh sq ft commercial asset in Chennai for Rs 2,541 crore, aiming to broaden their office space portfolio. The acquisition includes completed and under-construction office areas. It supports Mindspace's strategy for growth amid rising office space demand.

Mindspace Business Parks REIT has announced the acquisition of a substantial commercial asset in Chennai, spanning 2.6 million sq ft, for Rs 2,541 crore. This strategic move aligns with their expansion plans amidst heightened demand for office spaces.

The transaction involves acquiring full ownership of Sycamore Properties Pvt Ltd and Content Properties Pvt Ltd. In an official filing, the firm highlighted that the acquisition has been endorsed by the board of Mindspace Business Parks REIT, alongside a preferential issuance of up to Rs 675 crore, pending approvals from unitholders and regulatory bodies.

This is the fifth acquisition under the right of first offer agreement with its sponsors, K Raheja Corp. With 1.4 million sq ft office space completed and 1.2 million sq ft under construction, this acquisition bolsters Mindspace's presence in Chennai and enhances its capability to meet future leasing demands and foster long-term value for unitholders.