Mindspace REIT Announces Acquisition of c.1.82 msf ‘Commerzone Raidurg’, a Grade-A Commercial Asset in Hyderabad

Strategic c.INR 2,038 Crore acquisition in Madhapur, Hyderabad’s largest micro market

Fully leased asset, enhancing Occupancy and long-term Stability of the Portfolio

c.100% Leased to a Marquee Fortune 500 GCC

Acquisition at a c.7.5% discount to average of 2 Independent Valuations

Bengaluru, January 29, 2025: Mindspace Business Parks REIT (BSE: 543217 | NSE: MINDSPACE) (‘Mindspace REIT’), owner and developer of quality Grade A office portfolio located in four key office markets of India, announces acquisition of 100% equity shareholding in Sustain Properties Private Limited (“Sustain”), holding c.1.82 msf at Commerzone Raidurg, a Grade-A commercial asset located in Hyderabad’s Madhapur micro-market. This acquisition is pursuant to the Right of First Offer (ROFO) agreement entered by Mindspace REIT with the Sponsors. This acquisition aligns well with the growth strategy of Mindspace REIT, enhancing portfolio scale, income stability, and unitholder returns.

Speaking on the acquisition, Mr. Ramesh Nair, CEO of Mindspace REIT, said, “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 and 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.”

Transaction Highlights:

• Asset Overview:

• • • Leasable area of c.1.82 msf, part of a larger c.2.8 msf development
    • Fully leased asset ensuring stable income for the REIT
    • Occupied by Qualcomm, a marquee Fortune 500 company

• Portfolio Enhancement:

• • Strengthens Mindspace REIT’s presence in Hyderabad, taking portfolio size to c.15 msf ⁽¹⁾
  • WALE of c.12 years, offering long term stable income
  • Rentals at INR 69 ⁽²⁾ psf per month, indicating significant mark-to-market (MTM) potential

• • Financial Highlights:
    • Acquisition price of INR 2,038 Crore, a 7.5% discount to the average of two independent valuations

• Purchase consideration of c.INR 613 Crore

• • Addition of c.INR 167 Crore⁽²⁾ to FY25 NOI on a proforma basis; implying a growth of c.8.2% ⁽³⁾

• Post-Acquisition Portfolio Metrics:

• • Portfolio size to grow from c.34.8 msf to c.36.6 msf
  • Committed occupancy to increase from 91.5% to 92%
  • Gross Asset Value (GAV) to increase to c.INR 33,550 Crore
  • Loan-to-Value (LTV) ratio to increase to 25.3%, headroom available for growth

The Board of the Manager to Mindspace Business Parks REIT has approved the acquisition and preferential issue of units aggregating up to c.INR 613 Crore, subject to unitholders and other regulatory approvals, as may be required.