Mindspace Business Parks REIT , a prominent player in the Indian real estate investment trust sector, has successfully raised INR 600.00 crore through the issuance of commercial papers. This strategic move marks a significant step in the company's financial management and liquidity enhancement efforts.

Issuance Details

The commercial paper issuance comprises 12,000 units with a face value of INR 5,00,000 each. These short-term debt instruments come with a 41-day tenor and are set to mature on September 15, 2025. The listing of these commercial papers on the debt segment of BSE Limited took effect from August 6, 2025, as confirmed by BSE Notice No. 20250806-36.

Financial Strategy

This fundraising initiative is part of a broader financial strategy approved by the Executive Committee of K Raheja Corp Investment Managers Private Limited, the manager of Mindspace REIT. The committee had previously sanctioned the raising of funds through debt securities and commercial papers, with a cap on incremental borrowings set at INR 28,000.00 million. This limit includes the previously approved borrowings of INR 18,000.00 million.

Market Impact

The successful issuance of these commercial papers demonstrates Mindspace REIT's strong standing in the financial markets and its ability to access short-term funding efficiently. This move is likely to provide the REIT with additional financial flexibility to manage its operations and pursue growth opportunities in the dynamic real estate sector.

Regulatory Compliance

In line with regulatory requirements, Mindspace REIT has duly informed the National Stock Exchange of India Limited and BSE Limited about this issuance. The communication adheres to the regulations set forth by the Securities and Exchange Board of India (SEBI) for Real Estate Investment Trusts and Listing Obligations and Disclosure Requirements.

The commercial papers have been assigned the ISIN INE0CCU14104, facilitating their trading and settlement in the secondary market.

This latest financial maneuver by Mindspace Business Parks REIT underscores its proactive approach to capital management and its commitment to maintaining a robust financial position in the competitive real estate investment trust landscape.

Mindspace Business Parks REIT (Mindspace REIT) has announced strong financial results for the first quarter, demonstrating significant growth across key metrics.

Financial Highlights

Mindspace REIT reported a substantial increase in its Net Operating Income (NOI) for Q1, which grew by 24.2% year-on-year to Rs. 6,164.00 million. This growth was primarily driven by robust leasing activity and strategic acquisitions.

The REIT's revenue from operations also saw a notable uptick, rising by 21.4% year-on-year to Rs. 7,523.00 million. This increase reflects the REIT's ability to capitalize on the growing demand for high-quality office spaces in key Indian markets.

Distribution and Unitholder Returns

For Q1, Mindspace REIT declared a distribution of Rs. 3,527.00 million, representing an 18% increase compared to the same quarter last year. The distribution per unit (DPU) stood at Rs. 5.79, up 14.9% year-on-year. This distribution comprises:

Operational Performance

The REIT demonstrated strong operational performance during the quarter:

• Gross leasing of 1.7 million square feet
• Re-leasing spread of 29.5% on 1.4 million square feet of area re-let
• Portfolio committed occupancy improved to 93.7%
• In-place rent reached Rs. 73.00 per square foot per month

Strategic Acquisitions and Portfolio Expansion

Mindspace REIT continued its growth trajectory with strategic acquisitions. In July, the REIT concluded the acquisition of 100% equity shareholding in Mack Soft Tech Private Limited (MSTPL), which owns 'Q-City', a ~0.81 msf commercial asset in Hyderabad's Financial District. This acquisition, valued at Rs. 5,118.00 million, marks the REIT's first third-party asset acquisition outside its Portfolio Parks and increases its Hyderabad portfolio to over 16 msf.

Debt and Financial Position

As of June 30, Mindspace REIT maintained a strong balance sheet with a low loan-to-value (LTV) ratio of 25.0%. The REIT's cost of debt stood at 7.84% per annum, demonstrating its ability to access cost-effective financing.

Management Commentary

Ramesh Nair, CEO and MD of Mindspace REIT, commented on the results: "We've had yet another great quarter, renting out 1.7 million square feet and achieving a remarkable committed occupancy of 93.7%. Our NOI grew by a robust 24% driven by our acquisitions, rising rents and growing occupancy. We remain confident in the long-term prospects of our portfolio, supported by the strength of our high-quality assets, enduring tenant relationships, and proactive leasing strategy."

Board Appointment

In a move to strengthen its governance, Mindspace REIT welcomed Mr. Sandeep Mathrani to the Board of the Manager. Mr. Mathrani brings over three decades of experience in U.S. Real Estate Investment Trusts (REITs), having led prominent platforms such as General Growth Properties Inc. and WeWork Inc.

Mindspace REIT's strong Q1 performance underscores its position as a leading player in India's commercial real estate market. With its strategic acquisitions, robust operational metrics, and focus on high-quality assets in key markets, the REIT appears well-positioned for continued growth in the coming quarters.