As of September 30, the company had a portfolio of 38.2 million square feet of commercial space and following this acquisition this will increase to 39 million square feet.In a regulatory filing on Friday, the company said it has acquired three key CBD (central business district) assets for Rs 2,916 crore from K Raheja Corp.
The board of the Manager of Mindspace REIT has approved the acquisition and preferential issuance of units aggregating Rs 1,820 crore, subject to approvals from the unit holders and other regulatory authorities.
Building on the acquisition, Embassy REIT said it has acquired Pramaan Properties Pvt Ltd, which owns 0.45 million sq ft of commercial space in Worli in Mumbai and an office building spread over 0.1 million sq ft in Pune. It also acquired Sundew Real Estate Pvt Ltd, which owns about 0.2 million sq ft of premium office space in Mumbai. These acquisitions collectively represent approximately 0.8 million sq ft of premium leasable area, valued at a gross asset value (GAV) of Rs 3,106 crore by independent valuers.
“The acquisition will be completed at a gross acquisition price of Rs 2,916 crore, which represents a discount of 6.1 per cent to the average of two independent valuations,” the company said.
Ramesh Nair, MD and CEO of Mindspace REIT, said, “Bringing these assets into the Mindspace REIT portfolio is a strategic step in strengthening our presence in Mumbai’s most sought-after CBD office districts.”
These are high quality institutional assets, with strong cash flows, he added.
“For us it’s simple: invest in great locations, work with great tenants and create sustainable value for our unitholders,” said Nair.
Mindspace REIT’s existing portfolio consists of 5 integrated business parks and 6 standalone office buildings across Mumbai, Pune, Hyderabad and Chennai.
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