Mindspace Business Parks REIT has successfully concluded its postal ballot process, with unitholders approving preferential issue of units to facilitate the acquisition of two strategic properties. Following the approval, the REIT has issued clarifications regarding mathematical errors in the original postal ballot notice dated November 28, 2025.

Postal Ballot Results

The remote e-voting period ran from November 29, 2025, to December 28, 2025, with Mr. Rupesh Aggarwal of Chandrasekaran Associates serving as the scrutinizer. The voting results showed overwhelming support from unitholders:

Clarifications on Postal Ballot Notice

On January 07, 2026, Mindspace REIT issued clarifications regarding inadvertent mathematical errors in the postal ballot notice. The corrections include:

The REIT emphasized that these corrections do not impact the resolutions passed or the outcome of the postal ballot process.

Approved Acquisitions

The approved resolutions enable Mindspace REIT to proceed with the acquisition of two companies through preferential unit issuance:

Pramaan Properties Private Limited

100% shareholding acquisition includes:

• Ascent-Worli, Mumbai: Approximately 0.45 msf leasable area plus 36 residential units for rental
• Raheja Woods, Kalyani Nagar, Pune: Approximately 0.11 msf leasable area including amenity building

Sundew Real Estate Private Limited

100% shareholding acquisition includes:

• The Square Avenue 98 (BKC Annex): Located in Village Kole Kalyan, Mumbai Suburban District
• Current leasable area: Approximately 0.16 msf
• Enhanced potential: Approximately 0.22 msf leasable area

Voting Pattern Analysis

The voting results revealed strong institutional support, with public institutions showing 100% approval for both resolutions:

Strategic Impact

The approved acquisitions will add approximately 0.72 msf of leasable area to Mindspace REIT's portfolio, strengthening its presence in key markets of Mumbai and Pune. The preferential issue structure allows the REIT to complete these strategic acquisitions while maintaining its growth trajectory in India's commercial real estate sector. The clarification was signed by Bharat Sanghavi, Company Secretary and Compliance Officer, on behalf of K Raheja Corp Investment Managers Private Limited, acting as the Manager to Mindspace Business Parks REIT.

India's office real estate investment trusts are entering what Morgan Stanley calls a new phase of low-risk, compounding returns, driven by strong leasing momentum, easing interest rates, and sustained demand from global capability centres. FY25 marked a clear inflection point for listed office REITs, with distribution per unit growth of around 10.00% year-on-year — the first such acceleration since their listing.

Market Fundamentals Drive REIT Performance

Morgan Stanley expects distribution per unit to compound at roughly 10.00% annually over the next three years, supported by higher occupancies, new leasable area additions, and the full transmission of rate cuts. India's office market fundamentals remain resilient, with leasing volumes growing at a 33.00% compound annual growth rate over the past two years, while rents have expanded at a 7.00% CAGR.

The structural strength comes from robust GCC demand. According to NASSCOM, the number of GCCs in India is expected to rise from about 1,760 in FY25 to nearly 2,400 by FY30, with market size expanding at a similar pace. This growth trajectory should maintain strong demand for quality office assets.

Interest Rate Environment Provides Additional Support

Lower interest rates add another significant tailwind for REITs. The Reserve Bank of India has cut rates by a cumulative 125 basis points since January 2025, which Morgan Stanley expects to flow through to REIT distributions by FY27. This monetary easing creates a more favorable environment for real estate investment trusts.

Morgan Stanley's Investment Recommendations

Against this positive backdrop, Morgan Stanley has made strategic rating changes across the REIT sector:

Mindspace Emerges as Top Pick

Mindspace Business Parks REIT emerged as the top pick due to several compelling factors:

• Low leverage profile providing financial flexibility
• Strong sponsor-led acquisition pipeline
• Data centre exposure offering growth diversification
• High mark-to-market rental upside potential

Embassy Benefits from Strategic Positioning

Embassy Office Parks REIT benefits from dominant exposure to Bengaluru and GCC tenants, which contributed nearly two-thirds of its recent gross rentals. This positioning aligns well with the structural growth in global capability centres.

Brookfield Faces Different Growth Dynamics

Brookfield's growth strategy is more acquisition-led, which could potentially raise leverage levels while offering a less tax-efficient distribution profile compared to its peers.

Challenges Remain Despite Positive Outlook

Despite improving fundamentals, Morgan Stanley identified constrained institutional participation as a lingering challenge for the REIT sector. Regulatory changes, including Securities and Exchange Board of India reclassifying REITs as equities, should help over time, but near-term institutional inflows remain limited. This regulatory evolution represents a key factor for long-term sector development and broader market participation.