Mindspace Business Parks REIT has announced the acquisition of 100% equity shareholding in Sycamore Properties Private Limited and Content Properties Private Limited, comprising approximately 2.6 million sq.ft. at Commerzone Pallikaranai in Chennai for ₹25.4 billion. The board approved this strategic acquisition on March 31, 2026, marking the REIT's second major acquisition in Chennai's high-growth office market.

Major Acquisition Overview

The acquisition involves two Chennai-based companies owning substantial Grade-A office developments strategically located on Pallavaram-Thoraipakkam Road (PTR):

Asset Performance and Market Position

Commerzone Pallikaranai represents a modern Grade-A office campus spanning 12.4 acres with world-class sustainability credentials including IGBC Platinum and WELL Platinum certifications. The asset currently includes approximately 1.4 million sq.ft. of completed office space across 2 blocks, with the remaining 1.2 million sq.ft. under construction and estimated delivery by March 2027.

The campus is anchored by Shell, a Fortune Global 500 major, which occupies approximately 55% of the leased area and represents one of the largest transactions in Chennai in recent years.

Funding Structure and Financial Impact

The acquisition will be funded through preferential issuance of Mindspace REIT units to the selling shareholders:

Portfolio Enhancement and Strategic Benefits

Following completion of the acquisition, Mindspace REIT's portfolio metrics will see significant enhancement:

The acquisition enhances Mindspace REIT's presence in Chennai, increasing the city's share in the portfolio from approximately 3% to 9% by area. The transaction represents a 3.4% discount to the average of two independent valuations, providing immediate value accretion of ₹2.2 per unit.

Market Opportunity and Strategic Positioning

Chennai continues to exhibit the lowest vacancy rates among metro cities at approximately 7.1%, with strong office market fundamentals where demand consistently outpaces new Grade-A supply. The city recorded net absorption of 5.8 million sq.ft. during 2023-25, reflecting a 2.4x increase compared to 2016-22 period.

PTR has emerged as a key growth corridor, recording net absorption of 2 million sq.ft. in 2025, supported by strategic connectivity to the OMR IT corridor and upcoming metro infrastructure. With rentals currently at ₹80-90 per sq.ft. versus ₹120-130 per sq.ft. in OMR, PTR offers significant headroom for rental re-rating.

Regulatory Approvals and Timeline

The acquisition requires unitholder approval through postal ballot, scheduled for April 24, 2026. The transaction involves related party transactions requiring regulatory clearances, with pricing compliance meeting REIT Regulations requirements. The acquisition received comprehensive governance oversight through approvals from the Audit Committee, Investment Committee, and Independent Board Members.

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Mindspace Business Parks REIT has successfully completed quarterly interest payments totaling ₹1,344.89 crore across 12 series of Non-Convertible Debentures (NCDs) for the quarter ended March 31, 2026. The payments were executed on March 27, 2026, four days ahead of the scheduled due date of March 31, 2026.

Comprehensive NCD Portfolio Performance

The REIT's debt portfolio comprises 12 active NCD series with a combined issue size of ₹7,040 crore. The interest payments cover various series ranging from NCD Series 4 to Series 16, including one Green Bond series. All payments were made on a quarterly frequency basis with March 16, 2026 serving as the interest payment record date.

Timely Debt Service Management

The REIT demonstrated efficient debt management by completing all payments ahead of schedule. The previous interest payment cycle was completed on December 29, 2025, maintaining the quarterly payment frequency across all series. No delays or payment issues were reported for any of the NCD series during this quarter.

Green Finance Initiative

Notably, the portfolio includes Green Bond Series 5 with an issue size of ₹550 crore, reflecting the REIT's commitment to sustainable financing. This series paid ₹108.76 crore in interest for the quarter, representing one of the larger individual payments in the portfolio.

Regulatory Compliance

The interest payments were made in compliance with Regulation 57 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that all interest obligations due for the quarter ended March 31, 2026 have been fulfilled, with no unpaid obligations remaining in respect of interest or principal for any of the listed NCDs.

The successful completion of these payments reinforces Mindspace Business Parks REIT's strong financial discipline and commitment to meeting its debt obligations in a timely manner.