NEW DELHI: Mindspace Business Parks REIT (Mindspace REIT) has acquired 100% equity shareholding in Mack Soft Tech (MSTPL), holding ‘Q-City’, a 0.81 million sq ft commercial asset in Hyderabad’s Financial District for ₹511.8 crore.
The transaction has been undertaken through Horizonview Properties, an Asset SPV of Mindspace REIT. The asset shall be rebranded as ‘The Square, 110 Financial District’. Currently the asset is 65% occupied.
The deal strengthens Mindspace REIT’s Hyderabad presence to over 16 million square feet, in aggregate.
Ramesh Nair, CEO and MD of the company said, “Securing the property at a 11.6% discount to an independent valuation and an attractive c. 9.9 percent cap rate, demonstrates our disciplined capital deployment and commitment to long-term value for unitholders.”
The deal was closed at a gross acquisition price of ₹495.7 crore, translating to a capital value of ₹6,130 per sq ft — an 11.6% discount to the independent valuation. The asset is expected to generate a proforma NOI of ₹53.5 crore, representing a cap rate of ~9.9% and delivering a 2.6% boost to FY25 projected REIT NOI. The transaction has been entirely debt-funded, leading to a marginal increase in LTV ratio from 24.3% to 25.1%.
Following the deal, Mindspace REIT’s portfolio grows from 37.1 msf to 37.9 msf, while its Gross Asset Value (GAV) rises to ₹37,210 crore. The transaction is also value accretive, enhancing Net Asset Value (NAV) by ₹1.8 per unit.
