M&A

M&A

Mindspace REIT to acquire Chennai IT Park for Rs.2,541-Cr from K Raheja Corp

Economic Times  

Mindspace Business Parks REIT (MBPR) is to acquire Commerzone Pallikaranai, an IT Park in Chennai, for INR 2,541 crore. The transaction involves a preferential issuance of up to INR 675 crore. The REIT will acquire 100% equity shareholding in Sycamore Properties and Content Properties, which own the property. The acquisition is part of a Right of First Offer (ROFO) agreement with MBPR’s sponsors, K Raheja Corp.The Commerzone Pallikaranai IT Park spans 12.4 acres on Pallavaram-Thoraipakkam Road (PTR) and has a total area of 2.6 million sq ft. Currently, 1.4 million sq ft of office space across two blocks is completed, with the remaining 1.2 million sq ft under construction and an estimated delivery by March 2027. The campus is anchored by Shell, which occupies 55% of the leased area.This marks Mindspace REIT’s second acquisition in Chennai since its listing, increasing the city's share in its portfolio from 3% to 9% by area. Following the acquisition, Mindspace REIT’s total leasable portfolio will expand from 39 million sq ft to 41.6 million sq ft, and its Gross Asset Value (GAV) will increase from INR 44,130 crore to INR 46,760 crore. The acquisition price represents a 3.4% discount to the average of two independent valuations.