Mindspace REIT Marks 5 Years with Strong Growth Plans

Mindspace REIT, backed by K Raheja Corp, has marked five years since its 2020 listing with a robust growth trajectory.

Its net asset value (NAV) now stands at Rs. 43,400 crore, with net operating income rising from Rs. 1,374 crore in FY21 to Rs. 2,062 crore in FY25. Since listing, it has distributed over Rs. 5,500 crore to investors, delivering annualized returns of nearly 15 percent, despite global headwinds like COVID-19 and work-from-home shifts. The REIT has a net leasable area of 38.1 msf across Mumbai, Hyderabad, Pune, and an emerging Chennai portfolio.

Key Highlights

• Mindspace REIT delivered nearly 15 percent annualized returns since 2020 listing
• Plans Rs. 4,250 crore capex to add 3.7 msf of space and boost NOI
• Diversifying into data centers and hospitality alongside office leasing

It continues to add space through sponsor-built assets and third-party acquisitions, including the Q-City property in Hyderabad for Rs. 512 crore. Future plans include Rs. 4,250 crore capex to add 3.7 msf of space, potentially generating Rs. 900–1,000 crore in net operating income over the next three to four years.

Mindspace REIT is also diversifying beyond offices, commissioning two of five planned data centers with PDG and adding hotels in partnership with Hyatt. Redevelopment projects in Hyderabad and Navi Mumbai are also in focus to maximize land use.

"We have enough debt capacity. Our loan-to-value is around 26 percent today, and we can go all the way to 49 percent, but around 35 percent will be the watertight limit for us. Even with Rs 4,000 crore of capex, I don't think we are anywhere close to the comfort levels that we have for ourselves. We want to move to bond issuances to raise debt...we want to get to around 75 percent at the REIT level through bonds. If we need to, we can do a QIP or follow-on offer, but there is no plan to raise equity as of now," said Preeti Chheda, chief financial officer of Mindspace REIT.

Also Read: Mindspace REIT Achieves Record-Breaking FY25 with 14.1 percent Revenue Growth and Robust Leasing

The REIT has relied primarily on debt financing, including Rs. 1,200 crore sustainability-linked bonds from IFC, and maintains a conservative loan-to-value ratio of 26%. CEO Ramesh Nair highlighted that demand for Grade-A office space remains healthy, with supply keeping pace with absorption.