CHENNAI: Mindspace Business Parks REIT, owner of quality Grade A office assets, located in four key office markets of India, on Tuesday announced the acquisition of 100 per cent equity shareholding in Sycamore Properties Private Limited and Content Properties Private Limited, comprising 2.6 million sqft at Commerzone Pallikaranai, located on the Pallavaram–Thoraipakkam Road (PTR) in Chennai, for Rs 2,541 crore.
The Board of the Manager to Mindspace Business Parks REIT has approved the transaction and preferential issuance of up to Rs 675 cr, subject to unitholders and other regulatory approvals.
This transaction marks Mindspace REIT’s second acquisition post listing in Chennai, demonstrating the REIT’s ability to consistently execute on its well-defined growth strategy.
With this acquisition, the REIT continues to scale through disciplined capital allocation, adding relevant and significant office stock across key markets.
The acquisition takes the total additions thus far to 6.6 million sqft and Rs 8,800 cr of GAV, reflecting a track record of value-accretive portfolio expansion. Importantly, acquisitions remain well diversified across Mumbai, Hyderabad, Pune and Chennai, enhancing geographic balance and resilience.
This acquisition is pursuant to the Right of First Offer (ROFO) agreement with the Sponsors, K Raheja Corp and represents the fifth asset acquisition from the strong sponsor pipeline, emphasising a key structural advantage for Mindspace REIT. The Sponsor pipeline continues to provide visibility for future growth, while the REIT remains equally well positioned to evaluate third-party opportunities.
The acquisition price of Rs 2,541 cr (Enterprise Value) represents a 3.4 per cent discount to the average of two independent valuations. Further, the preferential issue of units is being made at an issue price of Rs 484.89 per unit.
The asset currently includes 1.4 million sqft of completed office space spread over 2 blocks offering large floor plates, with the remaining 1.2 million sqft under construction and estimated delivery by March ‘27.
The asset offers significant potential for mark-to-market with recent deals at Rs 85 per square foot per month. The campus is anchored by Shell, a Fortune Global 500 major, which occupies over 55 per cent of the leased area and stands as one of the largest transactions in Chennai in recent years.
Following completion of the acquisition, Mindspace REIT’s total leasable portfolio will increase from 39 million sqft to 41.6 million sqft, further strengthening the scale and diversification of the REIT’s portfolio. The Gross Asset Value (GAV) of Mindspace REIT is set to increase from Rs 44,130 cr to Rs 46,760 cr.
The acquisition enhances Mindspace REIT’s presence in Chennai, increasing the city’s share in the portfolio from 3 per cent to 9 per cent by area.
Ramesh Nair, MD-CEO, Mindspace REIT, said, “The acquisition of Commerzone Pallikaranai is a strategic addition to our portfolio and meaningfully strengthens our presence in Chennai, one of India’s most resilient and high-growth office markets, with the lowest vacancy.
This high-quality campus offers institutional-grade infrastructure, a strong multinational tenant base and long lease tenures, along with embedded NOI growth potential from its under-construction area.
With PTR already established as one of Chennai’s major office corridors, where demand continues to outpace supply, this acquisition positions us strongly to capture future leasing demand, rental upside and long-term value creation for our unitholders.”