Mindspace REIT to acquire 2.6 lakh sq ft office space for Rs 275 crore

Realty developer K Raheja Corp-backed Mindspace Business Parks REIT is set to acquire 2.6 lakh sq ft office space in one of the business complexes developed by realtor.

The ready-to-move-in office space is part of a Special Economic Zone (SEZ) and Information Technology Park Mindspace Madhapur in Hyderabad. The commercial complex has a total leasable area of 13.1 million sq ft with a committed occupancy of 97.4%.

The business park, which has 19 completed buildings, hosts over 100 tenants, including major organizations like Cognizant, Verizon, BA Continuum, Larsen & Toubro, NCR, and AMD, among others.


Following this acquisition, the REIT’s total office portfolio will increase to 34.7 million sq ft across 10 assets in Mumbai Metropolitan Region (MMR), Pune, Hyderabad, and Chennai.

The REIT’s board of directors approved the proposal to acquire this office space in its July-September quarterly earnings meeting on Friday.

Mindspace Business Parks REIT has reported 5.1% on-year growth in net operating income (NOI) at Rs 504 crore for the second quarter of financial year 2024-25. With this, the half year NOI has touched Rs 1000 crore, up 7%% from a year ago.


The REIT has announced a distribution of Rs 305 crore or Rs 5.15 per unit for the September quarter. The record date for the distribution is Oct 30, 2024. Payment of the distribution shall be processed on or before Nov 07, 2024.

It has also received government’s approval for demarcation of additional 1.2 million sq ft SEZ space across its properties. With this, the total demarcated area stands at 2.1 million sq ft.

"Our performance this quarter reflects both the strength of our business and the broader momentum in the commercial real estate sector. As demand for high-quality spaces continues to grow, we play a key role in shaping this landscape. We leased around 1 million square feet of our completed portfolio and increased our committed occupancy to 91.7%," said Ramesh Nair, CEO, Mindspace REIT.

The REIT is currently working on an under-construction pipeline of 4.4 million sq ft of which 1.3 million sq ft is expected to be completed this financial year.

"The expansion of our data centre portfolio to 1.68 million sq ft, with 3 new built-to-suit facilities, supports the increasing demand for digital infrastructure. With over 8 million sq ft of ongoing and upcoming projects, we are well positioned to support the sector’s evolving needs," Nair said.

Global data centre operator Princeton Digital Group has entered into a strategic partnership with Mindspace Business Parks REIT to develop its largest data centre campus in India at Mindspace Airoli West.

Under this new agreement, Mindspace REIT will develop 3 additional built-to-suit data centres.