Mindspace REIT to Buy Chennai Park from CapitaLand

Mindspace Business Parks REIT has entered into a significant real estate transaction by agreeing to acquire a majority stake in a large office complex in Chennai from CapitaLand Investment.

The deal which includes the International Tech Park Chennai (ITPC) located on Radial Road which serves as a major business route in the city has a total value of approximately $321 million which equals about ₹3,000 crore.

Under the contract Mindspace REIT will own 51 percent of the asset while 360 ONE Asset and its affiliated real estate fund will obtain the remaining 49 percent. The deal operates as a co-investment because institutional investors work together to purchase premium commercial assets.

Key Highlights

• Mindspace REIT acquiring majority stake in Chennai IT park from CapitaLand Investment.
• Deal valued around 321 million dollars structured as co investment with partners.
• Acquisition expands Mindspace portfolio boosting Chennai presence and term rental income stability.

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The IT Park spans approximately 2.6 million square feet through its two office towers which establish it as one of Chennai's most significant office campus properties.

The property hosts major multinational tenants which include leading global firms from retail financial services and renewable energy sectors to maintain continuous occupancy and generate extended rental income streams.

Mindspace REIT has expanded its operations in Chennai through this acquisition. The company has recently acquired another major office property in the same micro-market. The REIT shows a major increase in its Chennai market presence through these two investments which double its portfolio stake in the city.

The transaction provides Mindspace REIT with a better position in India because its office space market in this area maintains consistent demand for premium office spaces.

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The trust will achieve better long-term income predictions and future expansion through the acquisition of a sustainable institutional-grade campus which has strong tenant support.