top of page

Mindspace Business Parks REIT IPO to raise Rs 4,700 crore

Blackstone-backed Mindspace Business Parks REIT or Real Estate Investment Trust will launch its initial public offering (IPO) in the last week of July to raise about Rs 4,700 crore, said investment bankers aware of the development.


Blackstone and K Raheja Corp will offload units worth Rs 3,700 crore and theREITwill sell fresh units of about Rs 1,000 core in the issue, they said. Mindspace would be the second REIT to list on Indian bourses. Sponsored by K Raheja Corp, Mindspace has 29.5 million square feet leasable area spread across Mumbai, Pune, Hyderabad and Chennai.

The company has reported a 21 per cent jump in revenues at Rs 2,026 crore in FY20 over FY19. Profit for the year ended March 31, 2020 was flat at 514 crore. As on March 31, the total market value of its portfolio was Rs 23,675 crore. As of May, the committed occupancy of its portfolio stood at 92.4 per cent and average rent was 52.5 per sq ft.


Embassy Office Parks REIT, the only listed REIT in India, has returned 8 per cent since its listing on April 1, 2019 compared to the 9 per cent fall in the Nifty and the 25 per cent decline in the BSE Realty Index. On Thursday, the Embassy REIT closed at Rs 340 per unit on BSE.


Retail investors can apply to REIT units but with a minimum trading lot size of 50,000. Unlike equity investments, REITs provide assured returns to investors through compulsory dividend distribution. REITs must mandatorily distribute 90 per cent of the net distributable income as dividend. Further, there is a potential upside available to the investors based on periodic valuation of the property.


 
 
 

Comentarios


Mindcept-Logo.png

© MINDCEPT CONSULTING

  • LinkedIn

DISCLAIMER: The information contained in this website is offered for illustration purposes only and is general information. We make no representations or warranties of any kind (express or implied) with respect to the information, products, services, statements, figures, calculations, plans, images, logos, related graphics and are purely indicative in nature only. Whilst all reasonable care has been taking in providing all information, however, We or / and our related companies or/ and our representatives, consultants or / and our agents accept no responsibility for its completeness, accuracy, reliability, suitability or availability of any information contained herein for any action taken in reliance thereon by any party. Any reliance on information as contained in this website does not constitute an offer, inducement, representation, warranty or contract and may be relied upon at one’s risk and consequences.

bottom of page