Mindspace REIT Acquires 51% Stake in Chennai Office Complex for Rs 1,500 Crore
Mindspace Business Parks REIT Expands with Chennai Acquisition
Mindspace Business Parks REIT has made a significant move in its expansion plan by acquiring a 51 per cent stake in Radial IT Park Pvt Ltd, a commercial asset in Chennai. The company has purchased the stake for approximately Rs 1,500 crore, marking a major milestone in its growth.
The acquisition is part of a larger deal that values Radial IT Park Pvt Ltd at an enterprise value of Rs 3,000 crore. The remaining 49 per cent stake in the company will be acquired by 360 One Real Assets Advantage Fund, along with its affiliates. This deal positions Mindspace REIT as one of the largest owners of commercial office assets in Chennai.
Radial IT Park Pvt Ltd owns 2.6 million sq ft of office space in Chennai, making it a significant addition to Mindspace REIT's portfolio. The company has entered into definitive transaction documents for the proposed acquisition from AIGP2 Chennai 1 PTE Ltd, a 100 per cent subsidiary of CapitaLand India Growth Fund 2.
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| Company | Stake | Enterprise Value |
|---|---|---|
| Mindspace REIT | 51% | Rs 1,500 crore |
| 360 One Real Assets Advantage Fund | 49% | - |
CapitaLand India Growth Fund 2 is a development fund by CapitaLand Investment that invests in Grade A business parks in prime locations across India's gateway cities. The acquisition of Radial IT Park Pvt Ltd is expected to strengthen Mindspace REIT's position in the Chennai market.
Mindspace REIT's 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. The company was listed on stock exchanges in August 2020 and owns office assets in the Mumbai Region, Pune, Hyderabad, and Chennai.
The acquisition of Radial IT Park Pvt Ltd is a strategic move by Mindspace REIT to expand its presence in the Chennai market. With its institutional-quality, low-carbon campus and long leases, the asset is expected to provide clear income visibility and a strong strategic fit for the company.
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Investor Takeaway
Investors should consider the potential for growth in the Indian real estate market, particularly in prime locations.
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