Mindspace REIT Buys Hyderabad Office Complex of 1.82 Million Square Feet for Enterprise Value of Rs. 2038 Crores

Mindspace Business Parks has bought Sustain Properties in Hyderabad. The company has commercial space of 1.82 million square feet in the city. The value of the sale is Rs. 2038 crores. It was made public on January 29 in a regulatory filing.

The company will take over 100% of Sustain Properties Pvt Ltd. The market value of equity is Rs. 613 crores. As a consideration, units will be given in Mindspace REIT for the shareholders of Sustain Properties. The deal will be completed by the end of March.

Commerzone Raidurg is a Grade A commercial space in the Madhapur area. The company says the buy will line up with Mindspace REIT's plan for growth. It has enhanced the portfolio of the company and has added to income stability. The sale will also boost returns for unitholders.

The position of Mindspace REIT in the city has been strengthened because of the acquisition. It has expanded its portfolio to 15 million square feet. The company stated that the rental of the space will be Rs. 69 per square foot per month. It is indicative of strong MTM (mark-to-market) potential.

Buying Commerzone Raidurg is key in the growth plan of Mindspace REIT. The property is in the central business district. It is Grade-A+ and fully leased. The buy will help strengthen its portfolio and add to its income and growth for unitholders. It has well-known tenants and strong MTM potential. These bolster its position in the commercial real estate sector.

Ramesh Nair, CEO of Mindspace REIT, said the takeover boosts its leading position in commercial real estate. It shows the focus is on investments in high-value properties that create income. He said it helps its standing in the changing market. It also supports financial stability in the long term. The Fortune 500 company Qualcomm has leased the office space.

Backed by the K Raheja Group, Mindspace REIT reported an 8% rise in net income in the third quarter of 2024 to Rs. 521.8 crores. By the third quarter's end, its portfolio was 34.8 million square feet. Space of 26.8 million was completed, and 4.6 million is under construction. Future development will be on 3.4 million square feet of area.

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