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.