Mindspace Business Parks REIT has informed the Exchange regarding Disclosure of material issue
Awaiting price reaction for this filing.
The Board of K Raheja Corp Investment Managers (acting as Manager to Mindspace REIT) has approved two acquisitions in Chennai, Tamil Nadu. The first is 100% of Sycamore Properties Private Limited for Rs. 1,596.8 crore, which includes an under-construction office block (Block 1, ~11.75 lakh sq. ft.) and Block 2 (~6.81 lakh sq. ft.). The second is 100% of Content Properties Private Limited for Rs. 944.1 crore, which includes Block 3 (~7.09 lakh sq. ft. of leasable area). Both sellers are related parties of Mindspace REIT, so the deals need unitholder approval via a postal ballot. To partly fund the deals, Mindspace will issue up to 72.72 lakh units to Sycamore shareholders and 66.43 lakh units to Content shareholders, totaling about 1.39 crore new units at Rs. 484.89 per unit.
The acquisitions expand Mindspace REIT's Chennai office portfolio with roughly 25.6 lakh sq. ft. of chargeable/leasable area, but existing unitholders face dilution from the ~1.39 crore new units. Since the sellers are related parties, the deals require unitholder approval via postal ballot, which is the main near-term catalyst to watch.