Mindspace REIT pre-leases Hyderabad building to Chalet Hotels for ₹350 crore luxury hotel

BENGALURU: Mindspace Business Parks REIT, which owns and develops Grade A office assets, on Wednesday said it has pre-leased a 530,000 sq. ft building at its Mindspace Madhapur campus in Hyderabad to Chalet Hotels Ltd for a luxury hotel project.

The development entails an investment of ₹350 crore and is expected to be completed by the end of FY28.

The mixed-use building will include a 330-room hotel along with ancillary commercial space. The property will be developed through Mindspace REIT’s special purpose vehicle, K. Raheja IT Park (Hyderabad) Ltd (KRIT).

Chalet Hotels is backed by K Raheja Corp, which is also the sponsor of Mindspace REIT.

Mindspace Madhapur, among Hyderabad’s oldest and largest integrated business park campuses, spans more than 13 million sq. ft of premium office space. The campus already houses three Westin-branded hotels and the Inorbit Mall, and hosts more than 100,000 professionals.

The upcoming project will be the third hotel within the campus, the REIT said.

“This development reflects our strategy of creating long-term value by strengthening the ecosystem within our existing business parks through high-quality, complementary uses,” said Ramesh Nair, chief executive officer and managing director, K Raheja Corp Investment Managers Pvt Ltd said.

“By partnering with Chalet Hotels, we are combining our development and asset management capabilities with a proven hospitality platform. The long-tenure structure with built-in escalations provides meaningful revenue visibility, while the addition of luxury hospitality further enhances the attractiveness of Mindspace Madhapur for occupiers," Nair added.

Under the arrangement, KRIT will construct the building, while Chalet Hotels will undertake interior fit-outs and operationalization of the hotel and related facilities.

Chalet Hotels owns, develops, manages and operates high-end hotels in India, with a portfolio of more than 3,300 keys. Its properties include Athiva Resort & Spa, Khandala; JW Marriott Sahar in Mumbai; The Westin Mumbai Powai Lake; and The Westin Rishikesh.

Mindspace REIT is one of the four publicly listed office real estate investment trusts (Reits) in the country. The other three are Embassy Office Parks REIT, Brookfield India Real Estate Trust and Knowledge Realty Trust.

Its portfolio comprises 31.9 million sq. ft of completed area, 3.6 million sq. ft under construction and 3.5 million sq. ft of future development potential, across five integrated business parks and nine standalone office assets. Net operating income rose 29% year-on-year to ₹671 crore in the December quarter.