Mindspace Business Parks REIT has announced the acquisition of 2.6 million sq ft of Grade A office space in Chennai for about ₹2,541 crore, the company said in a regulatory filing on March 31.
The REIT will acquire 100% equity stakes in Sycamore Properties and Content Properties, which own the asset, it said.
The acquisition, approved by the board of the REIT manager, will be partly funded through a preferential issue of units worth up to ₹675 crore, subject to unitholder and regulatory approvals. The deal marks the REIT’s second acquisition in Chennai since its listing and is part of its strategy to scale its portfolio across India’s key office markets, the company said.
Located along the Pallavaram–Thoraipakkam Road (PTR), the office space named Commerzone Pallikaranai sprawls 12.4 acres. The asset currently has around 1.4 million sq ft of completed space across two blocks, while an additional 1.2 million sq ft is under construction and expected to be delivered by March 2027, the statement said.
“The asset offers significant potential for mark-to-market with recent deals at ₹85 per square foot per month. The campus is anchored by Shell, a Fortune Global 500 major, which occupies about 55% of the leased area and stands as one of the largest transactions in Chennai in recent years. Further, 1.2 million sq ft under construction block, provides a clear runway for future growth, improved returns and embedded value creation, especially in a supply-constrained market,” the company said.
Following the acquisition, Mindspace REIT’s total leasable portfolio will increase from about 39 million sq ft to 41.6 million sq ft, while its gross asset value (GAV) will rise from approximately ₹44,130 crore to ₹46,760 crore. Chennai’s share in the portfolio will expand from around 3% to 9% by area, improving geographic diversification across markets such as Mumbai, Hyderabad, Pune, and Chennai, the company said.
“The acquisition of Commerzone Pallikaranai is a strategic addition to our portfolio and meaningfully strengthens our presence in Chennai, one of India’s most resilient and high-growth office markets, with the lowest vacancy. This high-quality campus offers institutional-grade infrastructure, a strong multinational tenant base and long lease tenures, along with embedded NOI growth potential from its under-construction area. With PTR already established as one of Chennai’s major office corridors, where demand continues to outpace supply, this acquisition positions us strongly to capture future leasing demand, rental upside and long-term value creation for our unitholders,” Ramesh Nair, MD and CEO, Mindspace REIT said.
