Mumbai: Mindspace REIT has unveiled a major expansion move with the acquisition of three high-value Central Business District (CBD) assets worth approximately ₹2,916 crore from K Raheja Corp.
The Board of the Manager to Mindspace REIT has also approved a preferential issue of units aggregating up to nearly ₹1,820 crore, subject to required regulatory and unitholder clearances.
Mindspace REIT has finalized definitive agreements to acquire:
- Pramaan Properties Private Limited (Pramaan):
- Owns around 0.45 million sq ft in Ascent – Worli, a prestigious newly completed Grade A commercial tower in Mumbai’s prime Worli micro-market.
- Also owns a ~0.1 million sq ft office building in Pune’s Kalyani Nagar business district.
- Sundew Real Estate Private Limited (Sundew RE):
- Holds approximately 0.2 million sq ft of Grade A office space at The Square Avenue 98 (BKC Annex), situated in the heart of Mumbai’s financial cluster of BKC and BKC Annexe.
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Collectively, these assets represent nearly 0.8 million sq ft of premium leasable space. Independent valuers have assigned them a Gross Asset Value (GAV) of approximately ₹3,106 crore.
The acquisition price of around ₹2,916 crore reflects a 6.1% discount to the average of two independent valuations.
Mindspace REIT Strengthens CBD Presence
The Mumbai assets are anchored by leading global banks and marquee multinational tenants. Committed occupancy levels stand at:
- Ascent – Worli: ~86%
- The Square Avenue 98 (BKC Annex): 100%
- Pune office building: 100%
Post-transaction, Mindspace REIT’s total portfolio will expand to approximately 39 million sq ft, reinforcing its presence across India’s most significant commercial corridors. Its Gross Asset Value (GAV) will rise from nearly ₹41,020 crore to approximately ₹44,126 crore.
Mindspace REIT Projects NOI Growth and Value Accretion
On a proforma basis, the acquisition is expected to deliver:
- ~9% growth in Net Operating Income (NOI)
- ~1.7% DPU accretion
- Front-office portfolio contribution rising to ~7.9%
- Stable rental inflows backed by blue-chip tenants
The WALE (Weighted Average Lease Expiry) of the combined properties stands at about seven years, ensuring long-term stability and income visibility.
Ramesh Nair, MD & CEO of Mindspace REIT, said: “Integrating these assets into the Mindspace REIT portfolio strengthens our position across Mumbai’s most sought-after CBD districts. These high-quality institutional assets with strong cash flows and leading global tenants enhance the scale and long-term fundamentals of our portfolio. This acquisition reiterates our commitment to building resilient, value-accretive workspaces for our unitholders.”
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Key Transaction Metrics
Asset Overview
- Aggregate leasable area: ~0.8 million sq ft
- Independent valuation: ~₹3,106 crore
- Marquee global tenants, including major Wall Street names
- Occupancy: 86–100% across assets
Portfolio Impact
- Strengthens Mindspace REIT’s CBD footprint in Mumbai
- WALE of ~7 years
- Value-add potential at Avenue 98 (BKC Annex) via mark-to-market and area enhancement
Financial Details
- Acquisition price: ~₹2,916 crore (enterprise value)
- Equity purchase consideration: ~₹1,820 crore
- Expected FY26 NOI addition: ~₹226 crore
- LTV ratio to rise marginally from 24.2% to 24.7%
Mindspace REIT’s Acquisition Track Record
Over the years, Mindspace REIT has expanded through strategic acquisitions including Commerzone Raidurg (Hyderabad), full ownership consolidation at Commerzone Porur (Chennai), expansions at Yerwada (Pune), and the acquisition of The Square, 110 Financial District in Hyderabad.
The current transaction marks the REIT’s second sponsor acquisition, taking total acquisitions to approximately 3.2 million sq ft.
