Mindspace REIT to acquire 2.6-million-sq-ft Chennai IT park for Rs 2,541 cr

Mindspace Business Parks REIT has entered into an agreement to acquire a 2.6-million-sq-ft information technology, Commerzone Pallikaranai, park spread over spanning 12.4 acres on the Pallavaram–Thoraipakkam Road (PTR) in Chennai, for Rs 2,541 crore.

The REIT will acquire 100% equity shareholding in Sycamore Properties and Content Properties that owns the property. The board of the manager to Mindspace Business Parks REIT has approved the transaction and preferential issuance of up to Rs 675 crore, subject to unitholders and other regulatory approvals.

This transaction marks Mindspace REIT’s second acquisition post listing in Chennai. The acquisition takes the total additions to its portfolio thus far to 6.6 million sq ft and Rs 8,800 crore of gross asset value (GAV), reflecting value-accretive portfolio expansion. These acquisitions remain diversified across Mumbai, Hyderabad, Pune and Chennai.


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 structural advantage for Mindspace REIT.

“This acquisition 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,” said Ramesh Nair, MD & CEO, 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 REIT said.

The acquisition price of Rs 2,541 crore of enterprise value represents a 3.4% 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 sq.ft. of completed office space spread over two blocks, with the remaining 1.2 million sq ft under construction with estimated delivery by March 2027. The campus is anchored by Shell, which occupies 55% 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 sq ft to 41.6 million sq ft. The GAV of Mindspace REIT is set to increase from Rs 44,130 crore to Rs 46,760 crore. The acquisition enhances Mindspace REIT’s presence in Chennai, increasing the city's share in the portfolio from 3% to 9% by area.