Mindspace REIT’s ₹2,541 Cr Chennai Milestone

Mindspace Business Parks REIT has entered into an agreement to acquire Commerzone Pallikaranai, a 2.6 million sq. ft. IT park located on Pallavaram–Thoraipakkam Road in Chennai, for ₹2,541 crore.

This marks the REIT’s second acquisition in Chennai since its listing, expanding its portfolio in the city to 6.6 million sq. ft., with a gross asset value (GAV) of ₹8,800 crore. The transaction aligns with Mindspace REIT’s strategy to diversify its presence across key markets, including Mumbai, Hyderabad, Pune, and Chennai. As part of the deal, the REIT will acquire 100 percent equity in Sycamore Properties and Content Properties, the entities that own the asset. The acquisition has been approved by the board, along with a proposed preferential issue of up to ₹675 crore, subject to approvals from unitholders and regulatory authorities.

According to Ramesh Nair, MD and CEO of Mindspace REIT, the acquisition reinforces the REIT’s position in Chennai, a high-growth and resilient office market with relatively low vacancy levels. The IT park features strong infrastructure, a roster of multinational tenants, and offers further growth potential.

News by Rahul Yelligetti.