New Delhi, April 15 -- K Raheja Corp-sponsored Mindspace Business Parks REIT and asset management firm 360 One Asset have together acquired International Tech Park Chennai (ITP Chennai), Radial Road, from global real estate manager CapitaLand Investment Ltd at a 51 and 49 percent ratio, respectively, the listed real-estate investment trust (REIT) said in a statement.

ITP Chennai, a 2.6 million sqft office campus, has fetched a valuation of Rs 3,000 crore (around $321 million).

The duo has acquired the asset from CapitaLand India Growth Fund 2, a development fund by CapitaLand Investment that invests in Grade A business parks in prime locations across India's gateway cities.

"This partnership with 360 ONE Asset brings together complementary institutional expertise and a shared investment philosophy, enabling the acquisition of a high-quality, large-scale asset. On completion, the asset will be rebranded as 'One Radial' by Mindspace REIT," the statement said.

In a separate statement, CapitaLand said that the divestment will exceed the fund's targets, and deliver strong returns to our institutional capital partners. "A development fund, CIGF2 invests in Grade A business parks in prime locations across India's gateway cities such as Bengaluru, Mumbai and Pune. The fund continues to seek investment opportunities in India's gateway cities," it added.

Real estate consultancy firm JLL was the advisor on the transaction.

The deal, which has been in the works for the last few months, got bids from many contenders including Embassy REIT, Brookfield, EAAA Alternatives besides Mindspace REIT and 360 One.

The development comes soon after VCCircle exclusively reported that the deal is nearing closure and 360 One has entered the fray.

The ITPC - Radial Road campus comprises two towers, each with a leasable area of 1.3 million sqft. This announcement follows Mindspace REIT's recent acquisition of Commerzone Pallikaranai, a 2.6 million sqft office asset in Chennai for Rs 2,541 crore, further strengthening the REIT's presence in this micro-market.

The acquisition represents Mindspace REIT's third acquisition in Chennai and further reinforces its strategy to grow inorganically through both sponsor and non-sponsor acquisitions, acquiring high-quality, income-generating assets in key growth markets. This builds on c. 6.6 million sq. ft. of acquisitions undertaken across the country to date.

Upon completion of both transactions, Mindspace REIT's total leasable portfolio will increase from 39.0 million sq. ft. to c. 44.2 million sqft.

"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," said Ramesh Nair, managing director and chief executive officer of Mindspace REIT.

Published by HT Digital Content Services with permission from VC Circle.