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Mindspace REIT buys 8.1 lakh sq ft commercial complex in Hyderabad for ₹512 crore
Mindspace REIT has bought 100% equity shareholding in Mack Soft Tech Pvt Ltd, which owns 'Q-City', a 8 lakh sq ft office asset in Hyderabad's financial district
Mindspace Business Parks REIT, owner and developer of Grade A offices portfolio located in four key office markets in the country, has acquired an office complex spread across 8 lakh sq ft in Hyderabad for ₹512 crore, the company said in a statement on July 24.
In a regulatory filing on July 24, the company informed that it has acquired 100% equity shareholding in Mack Soft Tech Pvt Ltd, which owns 'Q-City', a 8 lakh square feet commercial asset in Hyderabad's financial district.
This acquisition is Mindspace REITs’ first third party asset addition, outside its Portfolio Parks and reinforces its commitment to long-term growth and value creation for unitholders, it said.
The transaction has been undertaken through Horizonview Properties Private Limited, an Asset SPV of Mindspace REIT. The asset shall be rebranded as The Square, 110 Financial District, the company said.
The deal strengthens Mindspace REIT’s Hyderabad presence to over 16 million square feet, in aggregate. Hyderabad is a commercial market characterized by high GCC demand, minimal institutional-grade vacancy, and strong tenant preference. With this acquisition, Mindspace REIT enters the financial district, a promising office market of Hyderabad with strong medium to long term potential, it said.
Property secured at a 11.6% discount
Ramesh Nair, CEO and MD of Mindspace Business Parks REIT said, “We have just closed our first large external acquisition, a decisive milestone in Mindspace REIT’s growth journey. The campus, located in the Financial District, further strengthens our foothold in Hyderabad. The market is India’s hottest GCC hub, now home to more than 350 global capability centres and the nation’s fastest-growing tech and BFSI talent base. It also deepens our presence in a core city we know well.”
Also Read: Mindspace REIT acquires 1.82 mn sq ft office complex in Hyderabad for ₹2038 crore enterprise value
“With institutional-quality supply extremely tight and virtually no major investment-grade assets on the market, the timing is ideal. As Madhapur and HITEC City approach capacity, global occupiers are migrating westward in the city, and our acquisition positions us to capture this demand. Securing the property at a 11.6% discount to an independent valuation and an attractive 9.9 percent cap rate demonstrates our disciplined capital deployment and commitment to long-term value for unitholders. This is how we grow - strategically, selectively, and with conviction,” he said.
After this acquisition, Mindspace Business Parks REIT portfolio size would rise to 37.9 million square feet, of which 30.8 million square feet area is completed, 3.7 million square feet area is under construction and 3.4 million square feet is for future development, the company statement said.
The company has a strong presence in Mumbai Region, Pune, Hyderabad, and Chennai. Its portfolio consists of five integrated business parks and seven independent office assets.
