Real estate firm Mindspace Business Parks REIT has acquired Sustain Properties, which owns 1.82 million sq ft of commercial space in Hyderabad, at an enterprise value of ₹2,038 crore, the company said in a regulatory filing on Jan 29.
Mindspace REIT will acquire 100 per cent equity in Sustain Properties Pvt Ltd at an equity value of ₹613 crore. The shareholders of Sustain Properties will be allotted units in Mindspace REIT as consideration. The deal is expected to close by the end of March.
Commerzone Raidurg is a Grade-A commercial asset located in Hyderabad’s Madhapur micro-market. The company said this acquisition aligns well with Mindspace REIT's growth strategy, enhancing portfolio scale, income stability, and unitholder returns.
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The acquisition strengthens Mindspace REIT’s presence in Hyderabad, taking the portfolio size to 15 million sq ft. The company added the space will have an office rental of ₹69 per sq ft per month, indicating significant mark-to-market (MTM) potential.
“The acquisition of Commerzone Raidurg is a key milestone in Mindspace REIT’s commitment to delivering value and growth for unitholders. Located in Hyderabad’s prime central business district, this Grade-A+, fully leased asset enhances our portfolio, boosts income stability, and aligns with our growth strategy. With a marquee tenant and mark-to-market potential, it reinforces our position as a leader in India’s commercial real estate sector. It reflects our focus on strategic investments in high-quality, income-generating assets. This acquisition strengthens our presence in a dynamic market and supports long-term financial stability," Ramesh Nair, CEO of Mindspace REIT, said.
{{/usCountry}}“The acquisition of Commerzone Raidurg is a key milestone in Mindspace REIT’s commitment to delivering value and growth for unitholders. Located in Hyderabad’s prime central business district, this Grade-A+, fully leased asset enhances our portfolio, boosts income stability, and aligns with our growth strategy. With a marquee tenant and mark-to-market potential, it reinforces our position as a leader in India’s commercial real estate sector. It reflects our focus on strategic investments in high-quality, income-generating assets. This acquisition strengthens our presence in a dynamic market and supports long-term financial stability," Ramesh Nair, CEO of Mindspace REIT, said.
{{/usCountry}}The office space has been leased to Qualcomm, a Fortune 500 company, it said.
Also Read: Mindspace REIT raises ₹650 crore from IFC via sustainability linked bonds
Recently, Mindpsace REIT reported an 8 per cent increase in net operating income (NOI) to ₹521.8 crore for the quarter ended December 2024.
Mindspace REIT is sponsored by the K Raheja Group. At the end of the third quarter, the company had a portfolio of 34.8 million (348 lakh) square feet, comprising 26.8 million square feet of completed area, 4.6 million square feet of area under construction, and 3.4 million square feet of future development.