New Delhi, March 31 Mindspace Business Parks REIT, a real estate firm, has acquired a 26 lakh sq ft commercial property in Chennai for ₹2,541 crore as part of its strategy to expand its business amid high demand for office spaces.
In a regulatory filing on Tuesday, the company said it has acquired 100% stake in Sycamore Properties Pvt Ltd and Content Properties Pvt Ltd for ₹2,541 crore.
Sycamore Properties and Content Properties own a commercial property in Chennai comprising around 2.6 million sq ft of office space.
The board of the manager of Mindspace Business Parks REIT has approved the transaction and the preferential issuance of up to ₹675 crore, subject to approval from unit holders and other regulatory authorities.
The preferential issue of units is being made at an issue price of ₹484.89 per unit.
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.
The asset currently includes 1.4 million sq ft of completed office space, with the remaining 1.2 million sq ft under construction and estimated delivery by March next year.
Ramesh Nair, MD and CEO of Mindspace REIT, said that the acquisition of this asset is a strategic addition to the portfolio and significantly strengthens the company's presence in Chennai.
"This acquisition positions us strongly to capture future leasing demand, rental upside, and long-term value creation for our unitholders," Nair added.
Mindspace Business Parks REIT, sponsored by the K Raheja Corp group, was listed on the stock exchanges in August 2020.
The REIT owns office properties in the Mumbai region, Pune, Hyderabad, and Chennai. Its portfolio has a total leasable area of 39 million sq ft, comprising 31.9 million sq ft of completed area, 3.6 million sq ft of area under construction, and 3.5 million sq ft of future development.