Mindspace Reit to raise Rs 1,800 crore through debt securities, CPs

Board committee approves Rs 1,800 crore fundraise plan via non-convertible debt and commercial papers amid rising NOI and strong leasing growth in FY25

K Raheja-backed Mindspace Business Parks Reit (real estate investment trust) will raise Rs 1,800 crore through a fresh issuance of non-convertible debt securities or commercial papers in one or more tranches.

 

The Reit’s executive committee, constituted by the board of directors of the manager at its meeting held on Tuesday, May 6, approved the fundraise.

 

In June last year, the Reit raised funds by issuing sustainability-linked bonds worth Rs 650 crore from the International Finance Corporation (IFC). It became the first Indian Reit to issue such bonds.

 

As of 31 March 2025, the Reit’s net debt stood at Rs 8,897.6 crore. Meanwhile, its net debt to earnings before interest, taxes, depreciation, and amortisation (Ebitda) stood at 4.5x.

 

 

Recently, the Reit reported a year-on-year (YoY) increase of 13.2 per cent in its net operating income (NOI) for the fourth quarter of financial year 2025 (Q4FY25) amid sustained demand for grade-A assets. The Reit’s NOI stood at Rs 522 crore, compared to Rs 461 crore in Q4FY24.

 

The Reit also declared a distribution of Rs 392 crore for Q3FY25, up 38.7 per cent YoY. The Reit cumulatively distributed approximately Rs 1,312 crore in FY25.

 

According to the Securities and Exchange Board of India (Sebi) regulations, Reits are mandated to distribute at least 90 per cent of their taxable income.

 

In FY25, the Reit’s NOI grew by 8.9 per cent YoY to Rs 2,062 crore, while gross leasing increased by 111.11 per cent YoY to 7.6 million square feet.