The company said the strategic acquisition is its first third party asset addition, outside its Portfolio Parks.
The transaction was undertaken via Horizonview Properties Pvt Ltd, an Asset SPV of Mindspace REIT. The asset will be rebranded as ‘The Square, 110 Financial District,” it said.With this deal, Mindspace REIT’s presence in Hyderabad spans an aggregate of 16 million square feet.
Ramesh Nair, the CEO and MD of Mindspace Business Parks REIT, said the company secured the property at an 11.6% discount to an independent valuation and around a 9.9% cap rate.The property is located opposite the US Consulate, offers good last-mile connectivity. It has currently occupied 65%, the company said.
With the acquisition, Mindspace said its portfolio size increases from 37.1 million square feet to 37.9 million square feet. Its gross asset value also rises from ₹36,650 crore to ₹37,210 crore. The loan-to-value ratio marginally increases from 24.3% to 25.1%.
The company said it is a value accretive transaction, increasing the net asset value by 1.8 per unit. It added that adequate debt headroom is available for further growth.
Shares of Mindspace Business Parks REIT declined 0.35% to ₹418.65 apiece at 9.30 am on Thursday, July 24. The stock has gained 13.5% this year, so far.
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