Mindspace Business Parks REIT, one of India’s leading office-focused REITs, has acquired three prime commercial assets from K Raheja Corp in Mumbai and Pune for a gross enterprise value of approximately INR 2,916 crore, representing a 6.1% discount to independent valuations. The acquisition, subject to unitholder and regulatory approvals, involves a purchase consideration of INR 1,820 crore for 100% equity.
The acquisition adds around 0.8 million square feet of premium leasable office space to the REIT’s portfolio, including two trophy assets in Mumbai’s central business districts and a strategic office building in Pune.
Mumbai Trophy Assets:
- Ascent, Worli: A newly completed 0.45 million sq. ft Grade A+ commercial tower in Mumbai’s prestigious Worli micro-market. Anchored by global banking tenants, the asset boasts a committed occupancy of around 86%.
- The Square Avenue 98, BKC Annex: Spanning 0.2 million sq. ft, this Grade A office building sits in the heart of Mumbai’s financial hub, fully occupied and offering value-add potential through mark-to-market rental opportunities.
Pune Asset:
- A 0.1 million sq. ft office building in Kalyani Nagar, fully leased, strategically located to serve the city’s growing corporate demand.
The combined acquisition strengthens Mindspace REIT’s presence in key CBD locations, enhances portfolio scale, and provides a long-term, stable income stream backed by marquee tenants, including two leading global banks. Post-acquisition, the REIT’s Gross Asset Value (GAV) will rise from INR 41,020 crore to approximately INR 44,126 crore, while its portfolio size expands to nearly 39 million sq. ft.
Strategic Benefits
The addition of these assets is expected to contribute 9% growth in net operating income (NOI) and 1.7% accretion to distribution per unit (DPU) on a proforma basis. The acquisitions further diversify the REIT’s portfolio across India’s most influential office corridors, with a weighted average lease expiry (WALE) of around seven years.
Ramesh Nair, MD and CEO of Mindspace REIT, said, “These acquisitions are a strategic step in strengthening our footprint in Mumbai’s most sought-after CBD districts. The assets are high-quality, institutional-grade, and anchored by strong cash-flow tenants. This reinforces Mindspace REIT’s position as a leader in India’s office real estate sector and creates long-term value for our unitholders.”
Portfolio Expansion and Growth Strategy
Mindspace REIT has steadily grown through selective acquisitions, sponsor buybacks, and strategic expansions. Past moves include full consolidation at Commerzone Porur (Chennai), selective expansions at Commerzone Yerwada (Pune), and the acquisition of The Square in Hyderabad. This transaction marks the REIT’s second sponsor acquisition, reinforcing its disciplined, value-accretive growth strategy.
The newly acquired Mumbai assets offer embedded mark-to-market potential, with the possibility of rental enhancements over time. The Pune office complements the REIT’s portfolio in a key regional market, further diversifying income streams.
The acquisition is expected to have a marginal impact on the loan-to-value (LTV) ratio, increasing it from 24.2% to 24.7%, leaving ample headroom for future expansion. Mindspace REIT’s focus remains on acquiring institutional-grade, income-generating assets in India’s most dynamic urban markets, combining strong occupancy, high-quality tenants, and strategic locations.
Looking Ahead
With Mumbai and Pune assets added to its portfolio, Mindspace REIT continues to leverage market opportunities to strengthen scale, enhance portfolio quality, and deliver sustained returns. The REIT’s approach of disciplined sponsor acquisitions and strategic expansions demonstrates its commitment to long-term growth, robust income generation, and value creation for unitholders.
