Mindspace Business Parks REIT , a prominent player in the Indian real estate investment trust sector, has made significant financial decisions that could impact its future operations and borrowing capacity.

Debt Fundraising Approval

The Executive Committee of K Raheja Corp Investment Managers Private Limited, acting as the manager to Mindspace REIT, has approved raising funds through debt securities. The approved fundraising has a ceiling of INR 115,000 crore, subject to the condition that the aggregate consolidated borrowings do not exceed 33% of the total asset value.

Amendment of Financial Covenants

In addition to the fundraising approval, Mindspace REIT has also amended the financial covenants for an existing INR 500 crore debenture issue dated July 22, 2022. The key changes in the financial covenants are as follows:

These amendments indicate a strategic shift in Mindspace REIT's financial management approach. The increase in the Net Total Debt to Net Operating Income ratio limit from 5.00x to 6.00x suggests a potential for higher leverage. Conversely, the reduction in the Loan to Value ratio limit from 49% to 37% implies a more conservative stance on asset-based borrowing.

Implications and Outlook

The approval for substantial debt fundraising, coupled with the amendments to financial covenants, signals Mindspace REIT's proactive approach to capital management. These decisions may provide the REIT with greater financial flexibility while maintaining a balanced risk profile.

Investors and market watchers will likely keep a close eye on how Mindspace REIT utilizes this expanded borrowing capacity and manages its debt levels in the context of its overall asset value and operating income.

As the real estate sector continues to evolve, especially in the commercial segment where Mindspace REIT operates, these financial maneuvers could play a crucial role in the REIT's ability to capitalize on market opportunities and manage its portfolio effectively.

Mindspace Business Parks REIT has achieved a significant milestone in its sustainability journey, securing the prestigious GRESB Sector Leader status for its outstanding Environmental, Social, and Governance (ESG) performance. This recognition underscores the REIT's commitment to sustainable real estate practices and its position as a leader in the industry.

Key Achievements

Mindspace REIT has demonstrated exceptional performance across various ESG metrics:

Sustainability Commitments

Mindspace REIT has set ambitious targets for the future:

• Net Zero emissions by 2042
• 42.00% GHG emissions reduction by FY2030 (aligned with SBTi 1.5°C pathway)
• 100.00% EV charging infrastructure and electric mobility by 2030 (EV100 commitment)

Leadership Perspective

Ramesh Nair, CEO & MD of Mindspace REIT, commented on the achievement: "We are happy to be recognized as a GRESB Sector Leader, a testament to our strong commitment to sustainability and responsible value creation. This achievement reflects the collective effort of our teams and stakeholders in embedding ESG principles across every aspect of our business."

Portfolio Overview

Mindspace REIT's portfolio includes:

• Total leasable area: 38.1 million square feet
• Completed area: 31.0 million square feet
• Area under construction: 3.7 million square feet
• Future development area: 3.4 million square feet

The REIT's assets comprise 5 integrated business parks and 6 independent office assets, serving approximately 223 tenants across key Indian office markets including Mumbai Region, Pune, Hyderabad, and Chennai.

Navi Mumbai Sustainability Partnership

Mindspace Business Parks REIT has joined as the Sustainability Partner for the 'Navi Mumbai Plastic and E-Waste Recyclothon' campaign. This initiative, launched by Navi Mumbai Municipal Corporation in collaboration with Project Mumbai, aims to engage 2 lakh citizens across 200+ locations to promote circular economy practices and responsible waste management.

The year-long campaign will focus on transforming collected plastic and e-waste into community assets such as benches, planters, and walking tracks. A key objective is the creation of Zero Waste Gardens. Employees from Mindspace's two business parks in Airoli will participate alongside local volunteers, further demonstrating the REIT's commitment to community engagement and sustainability.

CEO Ramesh Nair emphasized that sustainability is a competitive edge for the REIT, noting Navi Mumbai as an important growth market housing two of their largest business parks.

These recognitions and initiatives reinforce Mindspace REIT's position as a leader in sustainable real estate practices, demonstrating its commitment to creating value for stakeholders while prioritizing environmental stewardship and social responsibility.