Mindspace Business Parks Real Estate Investment Trust (REIT), backed by real estate developer K. Raheja Corp and private equity firm Blackstone, has filed draft prospectus papers with market regulator Securities and Exchange Board of India (Sebi) for an initial public offer (IPO).
This would be India’s second REIT listing after Embassy Office Parks REIT, backed by Bengaluru-based developer Embassy and Blackstone, went public in March 2019 after a successful ₹4,750-crore IPO. Shares of the Embassy Office Parks REIT have returned nearly 30% to investors since its listing less than a year ago.
The Mindspace REIT IPO consists of a fresh issue aggregating up to ₹1,000 crore along with an offer for sale (OFS) by existing shareholders, K. Raheja Corp. and Blackstone, as per the draft offer document. The quantum of the offer for sale by the existing shareholders is yet to be decided.
The draft papers say that the net proceeds will be utilised towards partial or full pre-payment or scheduled repayment of certain debt facilities and general purposes.
Mindspace Business Parks REIT owns quality office portfolio located across eight information technology parks in four key office markets -- Mumbai Region, Hyderabad, Pune and Chennai. The prospectus says that the REIT has a portfolio of commercial properties with a total leasable area of 29.5 million sq. ft (msf), of which Mumbai accounts for the biggest share with 12.1 msf of leasable real estate, followed by Hyderabad with 11.6 msf.
{{/usCountry}}Mindspace Business Parks REIT owns quality office portfolio located across eight information technology parks in four key office markets -- Mumbai Region, Hyderabad, Pune and Chennai. The prospectus says that the REIT has a portfolio of commercial properties with a total leasable area of 29.5 million sq. ft (msf), of which Mumbai accounts for the biggest share with 12.1 msf of leasable real estate, followed by Hyderabad with 11.6 msf.
{{/usCountry}}The book running lead managers to the issue are Morgan Stanley India, Axis Capital, DSP Merrill Lunch, Citigroup Global Markets, JM Finance, Kotak Mahindra Capital, CLSA India, Nomura Financial Advisory and Securities (India), UBS Securities India, Ambit Capital, HDFC Bank, IDFC Securities and ICICI Securities.
For those unaware, REIT is an investment tool that owns and operates rent-yielding real estate assets. After listing, units of REITs can be traded on stock exchanges like shares and securities. The biggest benefit of REITs is that they provide an option to small retail investors to invest in high-end commercial real estate which was out of reach earlier due to the extremely high ticket size.