NEW DELHI, Jan 29: Realty company Mindspace Business Parks REIT has purchased 1.82 million square feet of commercial space in Hyderabad for Rs 613 crore to enhance its rent-generating portfolio.
Mindspace REIT, which is publicly traded, will acquire 100 percent equity of Sustain Properties Pvt Ltd, the owner of this 1.8 million square feet area. The shareholders of Sustain Properties will receive units in Mindspace REIT as compensation.
In a regulatory announcement, Mindspace REIT stated that its board has authorized the “acquisition of 100 percent equity shareholding of Sustain Properties, which holds approximately 1.82 million (18.2 lakh) square feet of leasable area at Commerzone Raidurg, situated in Raidurg, Hyderabad.
The agreement is valued at Rs 612.9 crore.
The board has approved the issuance of up to 16,168,090 units of Mindspace REIT on a preferential basis, priced at Rs 379.08 per unit, as consideration for the acquisition, to the shareholders of Sustain Properties for their full equity stake.
Recently, Mindspace REIT reported an 8 percent growth in its Net Operating Income (NOI), reaching Rs 521.8 crore for the quarter ending December 2024.
Its NOI was Rs 473.1 crore for the same period last year.
The company announced a distribution of Rs 5.32 per unit, totaling Rs 315.48 crore for its unit holders.
This distribution includes a dividend of Rs 3.20 per unit, totaling Rs 189.76 crore; interest of Rs 0.22 per unit, amounting to Rs 13.04 crore; SPV debt repayment of Rs 1.88 per unit, aggregating Rs 111.48 crore; and other income of Rs 0.02 per unit, totaling Rs 1.18 crore.
For the December quarter of the 2024-25 fiscal year, the company announced an 11 percent higher distribution compared to the same period last year.
Mindspace Business Parks REIT, backed by the K Raheja Corp group, was listed on Indian stock exchanges in August 2020. It manages office portfolios in the Mumbai Region, Pune, Hyderabad, and Chennai.
By the end of the third quarter, the company had a portfolio of 34.8 million (348 lakh) square feet, which includes 26.8 million square feet of completed space, 4.6 million square feet under construction, and 3.4 million square feet of future development. (PTI)
