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Mindspace REIT buys office spaces in Mumbai, Pune for Rs Rs 2,916 cr
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 portfolio.
Mindspace REIT, sponsored by realty firm K Raheja Corp, has bought these three assets, comprising 8 lakh square feet area, in Mumbai and Pune.
As of September 30, the company had a portfolio of 38.2 million square feet of commercial space and after this acquisition it will increase to 39 million square feet.
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.
Elaborating on the acquisition, Embassy 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 square feet located in Pune.
It also acquired Sundew Real Estate Pvt Ltd, which owns around 0.2 million square feet 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.
Source: The Economic Times