Real estate investment trust Mindspace Business Parks REIT has acquired 51% stake in an information technology park spread over 2.6 million sq ft in Chennai for Rs 1,500 crore. The acquisition price includes the property’s debt worth Rs 600 crore and the deal values the asset at Rs 3,000 crore at enterprise level.
Along with the REIT, 360 ONE Asset’s real assets funds have picked up the balance 49% stake.
The REIT has purchased the asset, International Tech Park Chennai, Radial Road from AIGP2 Chennai 1 Pte Ltd., a 100% subsidiary of CapitaLand India Growth Fund 2 (CIGF2). The property comprises two towers, each of 1.3 million sq ft, with committed occupancy of 87% in Tower 1, and 28% in Tower 2, completed recently in September.
The asset offers mark-to-market potential in Tower 1, with recent deals in the micro-market closing at around Rs 85 per sq ft per month, the REIT said.
The campus is anchored by marquee multinational tenants, including the world’s largest retailer, a global financial services provider and a global wind technology company, together accounting for 70% of the leased area.
“Building on our recent acquisition of Commerzone Pallikaranai, this asset acquired from a fund under CapitaLand Investment, a leading global real asset manager, positions us as one of the largest owners of commercial office assets in Chennai. We are pleased to partner with 360 ONE Asset, a strategically aligned institutional investor, and are well-positioned to drive meaningful long-term growth and value creation for our unitholders,” Ramesh Nair, MD & CEO, Mindspace REIT.
This deal follows Mindspace REIT’s recent acquisition of Commerzone Pallikaranai, a 2.6 million sq. ft. Grade A office asset, also in Chennai’s PTR office corridor, at Rs 2,541 crore enterprise value, strengthening the REIT’s presence in this micro-market.
The simultaneous acquisition of two institutional quality office campuses of 2.6 million sq ft each, creates synergies along Chennai’s PTR corridor and positions the REIT among the top two office asset owners in Chennai.
Upon completion of both transactions, Mindspace REIT’s total leasable portfolio will increase to 44.2 million sq ft, and its gross asset value (GAV) shall rise to Rs 48,321 crore from Rs 44,130 crore. The acquisition enhances portfolio diversification, with Chennai’s share to grow from 3% to 14% by area.
Source: Economic Times