Mindspace Reit acquires three premium office assets for ₹2,916 crore

Mindspace Business Parks Reit, a real estate investment trust (Reit) backed by K Raheja Corp, has announced the acquisition of three office assets for ₹2,916 crore from K Raheja Corp.

 

The board of the manager of the Reit has approved the acquisition and also a preferential issue of units aggregating up to ₹1,820 crore.

 

These acquisitions collectively represent about 0.8 million square feet (msf) of premium leasable area, valued at a gross asset value (GAV) of ₹3,106 crore by independent valuers. The acquisition will be completed at a 6.1 per cent discount to the average of two independent valuations of the assets.

 

The three assets included 0.45 msf of office space owned by Pramaan Properties Pvt Ltd at the premium commercial tower Ascent in Worli (Mumbai), Office Building spread across 0.1 msf in Pune, and 0.2 msf space owned by Sundew Real Estate Pvt Ltd at The Square Avenue 98 (BKC Annex).

 

The preferential issue is for the 100 per cent equity shareholding and interest in Pramaan and Sundew -- the special purpose vehicles (SPVs) for office spaces at Ascent in Worli & Office Building in Pune, and The Square Avenue 98, respectively.

 

Post-acquisition, on a pro forma basis, Mindspace Reit’s portfolio will expand to 39 million square feet (msf) from the current size of 38.2 msf. The Reit’s GAV will grow to ₹44,126 crore from the current ₹41,020 crore.

 

With the said acquisitions, the Reit’s net operating income (NOI) is expected to deliver a growth of 9 per cent in FY26. The NOI stood at ₹2,061.6 crore in the fiscal year 2025 (FY25) and at ₹1,250.3 crore in the first half of FY26.

 

The acquisition is also estimated to enhance the Reit’s distribution per unit (DPU) by 1.7 per cent. The Reit distributed ₹1,312.1 crore in FY25 and ₹707.9 crore in H1 FY26.

 

Ramesh Nair, managing director and chief executive officer, Mindspace Reit, said, “Bringing these assets into the Mindspace Reit portfolio is a strategic step in strengthening our presence in Mumbai’s most sought-after CBD office districts. These are high-quality, institutional assets, with strong cash flows, and some of the biggest names of Wall Street as anchor tenants. They enhance the scale, stability, and long-term growth of our portfolio. For us, it’s straightforward -- invest in great locations, work with great tenants, and create durable value for our unitholders. This acquisition reflects our vision of loved workspaces, maximising value, and reinforces Mindspace REIT’s position as a leader in India’s office real estate sector.”

 

Additionally, with these acquisitions, the Reit’s loan-to-value ratio will increase marginally from 24.2 per cent to 24.7 per cent. The Reit noted that there’s enough headroom available for growth.