Mindspace Business Parks REIT , a prominent player in the Indian real estate investment trust sector, has made significant financial moves, issuing new debentures worth INR 600 crore.

New Debenture Issuance

Mindspace REIT's Executive Committee has approved the allotment of new debentures. The REIT issued 60,000 listed, rated, secured, redeemable, non-convertible debentures. Each debenture has a face value of INR 1,00,000, bringing the total principal amount to INR 600 crore.

Key details of the new debentures include:

The debentures were allotted with a premium of INR 14.75 lakh above the face value.

Financial Strategy

This debenture issuance is part of a larger financial strategy approved by the Executive Committee. The committee has given approval to raise funds through debt securities up to INR 2,800 crore, which includes INR 1,800 crore previously approved.

This move by Mindspace REIT demonstrates a strategic approach to capital management. By issuing these debentures, the REIT is potentially looking to optimize its debt structure and may be seeking to take advantage of favorable interest rates.

The successful execution of this financial transaction underscores Mindspace REIT's strong position in the market and its ability to manage its capital structure effectively.

Mindspace business Parks Reit has announced ambitious plans to boost its net operating income (NOI) by 50% over the next three to four years, coinciding with its celebration of five years since listing on Indian stock exchanges.

Expansion Plans and Growth Strategy

Mindspace REIT plans to deploy over Rs 4,200.00 crore to add 8 million square feet of area to its portfolio. This expansion is expected to increase the company's NOI by Rs 900.00-1,000.00 crore from its current level of Rs 2,000.00 crore. The trust currently operates 30 million sq ft, with an additional 3.5-4 million sq ft under construction and plans for another 4 million sq ft pending approvals.

Ramesh Nair, Managing Director, stated that construction on new projects will commence within 12-18 months. He expressed confidence in the company's prospects, citing India's cost advantages and dismissing concerns about potential impacts from trade policy shifts or AI adoption.

Five-Year Milestone and Performance Highlights

According to the latest LODR filing, Mindspace REIT has completed five successful years since its listing in August 2020. The company has reported impressive growth and returns:

• Delivered 14.80% annualized total returns since listing
• Portfolio size grew by 30%, from 23.90 msf at listing to 31.00 msf as of June 30, 2025
• Gross Asset Value (GAV) increased by 55%, from Rs 240.00 billion at listing to Rs 372.00 billion
• Net Asset Value (NAV) per unit rose by 28%, from Rs 338.40 to Rs 431.70

Key Achievements Since Listing

Mindspace REIT has made significant strides in various areas:

• Added 3.10 msf through strategic acquisitions
• Delivered 3.70 msf of new developments
• Achieved 25.20 msf of gross leasing, including re-leasing and fresh leasing
• Distributed Rs 55.90 billion cumulatively to unitholders
• Introduced 5 data centers to the portfolio, becoming the first Indian REIT to do so
• Raised funds through Sustainability-Linked Bonds at REIT level, another first for Indian REITs

Tenant Diversification and Occupancy

The share of Indian corporates in overall NOI has doubled to 25% over the past five years. Domestic companies are showing a preference for Mumbai suburbs, while multinationals favor locations such as Pune, Hyderabad, and Chennai. The REIT maintains a strong occupancy rate of 93.70%, reflecting consistent demand and healthy tenant retention.

Financial Management and Future Outlook

Preeti Chheda, CFO, highlighted the REIT's commitment to prudent financial management and sustainable long-term growth. The company has maintained a robust balance sheet with a Loan-to-Value (LTV) ratio of 25.00%.

As Mindspace REIT embarks on its ambitious growth plan, it continues to focus on creating high-quality business campuses that drive client growth, deliver long-term investor value, and offer attractive workspaces. The company remains optimistic about the future of commercial real estate in India and its ability to meet the evolving needs of businesses and employees alike.