New Delhi, April 1 -- K Raheja Corp sponsored Mindspace Business Parks REIT has acquired a 2.6 million sqft property at Commerzone Pallikaranai in Chennai for Rs 2,541 crore (around $270 million), the company said in a statement.

The company's Board has also approved a preferential issuance of up to Rs 675 crore. The acquisition price of Rs 2,541 crore represents a 3.4 per cent discount to the average of two independent valuations and the preferential issue of units is at an issue price of Rs 484.89 per unit.

This transaction marks Mindspace REIT's second acquisition post listing in Chennai. The REIT has acquired the asset from its sponsor K Raheja Corp under right of first offer (ROFO) agreement, marking fifth asset acquisition from the strong sponsor pipeline.

The statement said that the sponsor pipeline continues to provide visibility for future growth, while the REIT remains equally well positioned to evaluate third-party opportunities.

Office campus Commerzone Pallikaranai spans across 12.4 acres. It includes 1.4 million sqft. of completed office space spread over 2 blocks with the remaining 1.2 million sqft under construction. The campus is anchored, by occupying the largest space, by multi national company Shell.

Following the acquisition, Mindspace REIT's total leasable portfolio will increase from 39 million sqft to 41.6 million sqft.

"The acquisition of Commerzone Pallikaranai is a strategic addition to our portfolio and meaningfully strengthens our presence in Chennai, one of India's most resilient and high-growth office markets, with the lowest vacancy. This high-quality campus offers institutional-grade infrastructure, a strong multinational tenant base and long lease tenures, along with embedded NOI [net operating income] growth potential from its under-construction area," said Ramesh Nair, managing director and chief executive officer, Mindspace REIT.

Mindspace Business Parks REIT, sponsored by K Raheja Corp group, was listed on the Indian bourses in August 2020. The REIT owns office assets located in four key office markets of India, namely the Mumbai Region, Pune, Hyderabad, and Chennai, and has one of the largest Grade-A office portfolios globally.

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