Mindspace REIT announces Grade A office space acquisition for ₹2,541 crore in Chennai

Mindspace Business Parks REIT, owner of quality Grade A office assets, located in four key office markets of India has announced the acquisition of 100% equity shareholding in Sycamore Properties Private Ltd and Content Properties Private Ltd, comprising 2.6 million sq.ft. at Commerzone Pallikaranai, located on the Pallavaram–Thoraipakkam Road (PTR) in Chennai, for ₹2,541 crore. 

The Board of the Manager to Mindspace Business Parks REIT has approved the transaction and preferential issuance of up to ₹675 crore subject to unitholders and other regulatory approvals.

The preferential issue of units is being made at an issue price of ₹ 484.89 per unit.

Ramesh Nair, MD and CEO, Mindspace REIT, said, “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. This acquisition positions us strongly to capture future leasing demand, rental upside and long-term value creation for our unitholders,” he added. 

Commerzone Pallikaranai is a modern Grade-A office campus spanning 12.4 acres, with world-class sustainability credentials and amenities. It is designed to attract Global Capability Centres (GCCs) and large Indian corporations.

The asset currently includes 1.4 million sq.ft. of completed office space spread over 2 blocks offering large floor plates, with the remaining 1.2 million sq.ft. under construction.

Following completion of the acquisition, Mindspace REIT’s total leasable portfolio will increase from 39 million sq.ft. to 41.6 million sq.ft.