Mindspace REIT Resumes Working On IPO
Mindspace Business Parks REIT has restarted work on its initial public offering (IPO). As the resumption of economic activity brightens outlook for the real estate investment trust (REIT) backed by K Raheja Corp and Blackstone. Mindspace, which had filed its draft IPO prospectus in December, initially planned to go public before the end of March, but market volatility due to the covid-19 pandemic forced the company to wait. They have restarted work on its IPO. Investors’ roadshows will begin soon. If things go as planned, they could launch the deal in July itself. They definitely want to get done with the public offering within the September quarter. The biggest concern for commercial property owners is their technology tenants, who form the biggest customer base for office space in India and who are also seen to be at the forefront of the work-from-home (WFH) trend. Mindspace REIT derives almost 50% of its rental income from technology companies, the draft prospectus shows. IT services company Accenture is Mindspace’s biggest tenant and accounts for 8.7% of its annual rental income and occupies 1.9 million sq. ft of office space. However, despite these uncertainties, investors are still likely to bet on REITs. Investor interest in REITs in the current environment is validated by the recent sale of Embassy Office Parks REIT units by Blackstone to institutional investors.
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