Mindspace REIT Acquires Chennai Asset For Rs 25.41 Billion

01 Apr 2026 CW Team

This marks the REIT’s second acquisition in Chennai post listing, taking total additions to about 6.6 million sq ft and Rs 88 billion of gross asset value, reflecting continued portfolio expansion across Mumbai, Hyderabad, Pune and Chennai.

The acquisition is under a Right of First Offer agreement with sponsor K Raheja Corp, representing the fifth asset from its sponsor pipeline.

Commerzone Pallikaranai spans 12.4 acres and includes about 1.4 million sq ft of completed space and 1.2 million sq ft under construction, expected by March 2027. The asset is anchored by Shell and offers mark-to-market potential, with recent deals at Rs 85 per sq ft per month.

Post-acquisition, the REIT’s portfolio will increase to about 41.6 million sq ft, while GAV will rise to around Rs 467.6 billion. Chennai’s share will expand from about 3 per cent to 9 per cent.

Ramesh Nair, MD and CEO, Mindspace REIT, 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.”

The acquisition price reflects a 3.4 per cent discount to independent valuations, with an estimated NOI growth of about 10.2 per cent and NAV accretion of Rs 2.2 per unit. The portfolio’s loan-to-value ratio is expected to increase to about 28 per cent.

Chennai’s office market continues to show strong fundamentals, with net absorption rising to 5.8 million sq ft during 2023–25, supported by demand from multinational corporations and global capability centres.

Mindspace Business Parks REIT has acquired 100 per cent equity in Sycamore Properties and Content Properties, comprising about 2.6 million sq ft at Commerzone Pallikaranai, Chennai, for around Rs 25.41 billion. The Board has also approved a preferential issue of up to Rs 6.75 billion, subject to approvals.This marks the REIT’s second acquisition in Chennai post listing, taking total additions to about 6.6 million sq ft and Rs 88 billion of gross asset value, reflecting continued portfolio expansion across Mumbai, Hyderabad, Pune and Chennai.The acquisition is under a Right of First Offer agreement with sponsor K Raheja Corp, representing the fifth asset from its sponsor pipeline.Commerzone Pallikaranai spans 12.4 acres and includes about 1.4 million sq ft of completed space and 1.2 million sq ft under construction, expected by March 2027. The asset is anchored by Shell and offers mark-to-market potential, with recent deals at Rs 85 per sq ft per month.Post-acquisition, the REIT’s portfolio will increase to about 41.6 million sq ft, while GAV will rise to around Rs 467.6 billion. Chennai’s share will expand from about 3 per cent to 9 per cent.Ramesh Nair, MD and CEO, Mindspace REIT, 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.”The acquisition price reflects a 3.4 per cent discount to independent valuations, with an estimated NOI growth of about 10.2 per cent and NAV accretion of Rs 2.2 per unit. The portfolio’s loan-to-value ratio is expected to increase to about 28 per cent.Chennai’s office market continues to show strong fundamentals, with net absorption rising to 5.8 million sq ft during 2023–25, supported by demand from multinational corporations and global capability centres.

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Infrastructure Transport

06 Jul 2026

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Infrastructure Transport

06 Jul 2026

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..