Mindspace REIT acquires 2.41 lakh sq ft in Chennai for Rs 181.60 crore
NEW DELHI: Mindspace Business Parks REIT (Mindspace REIT) has acquired 2,41,694 sq ft of leasable area at Commerzone Porur, Chennai, for Rs 181.60 crore, including transaction costs translating to Rs 7,512 per sq ft, the company said in a BSE filing. This acquisition will help the company consolidate its ownership in the project.
The commercial property has two blocks comprising of three basements + ground + nine floors. The total area of the building is 1.13 million sq. ft, out of which Mindspace REIT via its SPV Horizonview Properties, prior to the acquisition owned 0.883 million sq. ft and 78% undivided share. RPIL Signalling Systems (RPIL) owned 22% undivided share in land and leasable area of 2,41,694 sq. ft which has now been acquired.
Mindspace REIT now owns 100% of the project. The deal was funded by debt, and no fee is payable to the manager for this acquisition, the company said.
“The transaction in addition to bolstering our position in the Chennai market, creates value for our unitholders. With a low loan-to-value ratio, Mindspace REIT is well-positioned to explore further inorganic growth avenues as they arise,” said Vinod Rohira, board member, K Raheja Corp Investment Managers, manager to Mindspace REIT.
Advanced negotiations are underway with a multinational client for around 45,000 sq ft of the acquired area, the company said.
With this acquisition, the company’s total leasable portfolio area grows from 32.1 million sq ft to 32.3 million sq ft. It also added Rs 0.362 per unit to the NAV of overall portfolio.
