Mindspace Business REIT files for IPO
According to draft prospectus filed by Mindspace, the REIT is targeting to raise ₹1,000 cr via a fresh issue of sharesThe REIT will use the IPO proceeds for partial or full prepayment, or scheduled repayment, of certain debt facilities of the assets held by it
MUMBAI : Mindspace Business Parks REIT, which is backed by real estate developer K. Raheja Corp. and private equity investor Blackstone, on Tuesday filed the draft prospectus for its initial public offering (IPO), making it the second REIT to attempt a listing on the Indian bourses.
In March, Bengaluru-based developer Embassy and Blackstone had launched India’s first public REIT, Embassy Office Parks REIT, in a ₹4,750-crore IPO.
According to the draft prospectus filed by Mindspace, the REIT aims to raise ₹1,000 crore through a fresh issue of shares, while the existing shareholders, K. Raheja Corp. and Blackstone, will offload a part of their shareholding through an offer for sale.
The REIT will use the IPO proceeds for partial or full prepayment, or scheduled repayment, of certain debt facilities of the assets held by it. The quantum of the offer for sale by the existing shareholders is yet to be decided.
According to the prospectus, the Mindspace REIT has a portfolio of commercial properties with a total leasable area of 29.5 million sq. ft (msf).
“Our portfolio comprises 19.8 msf of completed area, 6.1 msf of under construction area and 3.6 msf of future development area, as on 30 June 2019. Our portfolio has five integrated business parks with superior infrastructure and amenities (such as restaurants, crèches and outdoor sports arenas) and five quality independent offices," the prospectus said.
The Mindspace REIT portfolio is located in four key office markets—Mumbai Region, Hyderabad, Pune and Chennai. Mumbai comprises the biggest chunk of the portfolio with 12.1 msf of leasable real estate, followed by Hyderabad with 11.6 msf.
As on 30 June, the portfolio had 173 tenants and approximately 84.5% of its gross rentals were derived from multinational corporations and 34.8% from Fortune 500 companies. The REIT’s tenant base comprising a mix of multinational and Indian corporates, included affiliates of Accenture, Qualcomm, BA Continuum, JPMorgan, Amazon, Schlumberger, UBS, Capgemini, Facebook, Barclays and BNY Mellon, as on 30 June.
For 2018-19, the REIT reported revenue of ₹1,679.7 crore, compared to ₹1,502.2 crore in the previous fiscal. It reported a profit of ₹515.4 crore in fiscal 2019, as against ₹161 crore in the year-earlier.
Investment banks Morgan Stanley, Axis Capital, Nomura, Bank of America and Citi, among others, are managing Mindspace REIT’s initial share sale.
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