Mindspace Business Parks REIT has informed the Exchange regarding Disclosure of material issue
Awaiting price reaction for this filing.
The Executive Committee of K Raheja Corp Investment Managers (Manager to Mindspace REIT) approved raising funds through non-convertible debt securities and/or commercial papers, up to a net debt limit of ₹11,500 crore (INR 1,15,000 Million) for Mindspace REIT and its Asset SPVs combined, in one or more tranches. The aggregate consolidated borrowings, net of cash, will be capped at 33% of total assets value. Additionally, the financial covenants of an existing Debenture Trust Deed (dated July 22, 2022, covering ₹500 crore of privately placed debentures) were amended: the Net Total Debt to Net Operating Income (NOI) threshold was relaxed from ≤5.00x to ≤6.00x, while the Loan to Value (LTV) ratio was tightened from ≤49% to ≤37%. These changes are subject to requisite approvals under SEBI LODR Regulations.
The expanded debt headroom (up to ₹11,500 crore) signals potential future capital raising, likely to fund acquisitions or development, which could be positive for growth but may increase leverage and interest costs for unitholders. The relaxed NOI covenant gives the REIT more flexibility on debt servicing, while the tighter LTV cap keeps asset-backed borrowing discipline intact.