Raheja Mindspace REIT Plans to Develop 8 Lakh Sqft Property in Airoli, Navi Mumbai

Mindspace Business Parks REIT, which is supported by K Raheja Corp, plans to build a mixed-use property comprising commercial offices and a luxury hotel on an area of a whopping 8 lakh square feet within its existing business park in the Airoli east neighbourhood of the Mumbai metropolitan area.

Of the overall development, 5.30 lakh sq ft will be designated for corporate development and 2.80 lakh sq ft will be put aside for a premium hotel. On Monday, the REIT received a sanction from its board to execute a long-term lease with group company Chalet Hotels for this property.

said Ramesh Nair, Chief Executive Officer, K Raheja Corp Investment Managers, manager to Mindspace REIT.

In terms of development, the REIT is actively working on an under-construction pipeline of 2.9 million sq ft. In addition, the redevelopment of two buildings in the Madhapur neighbourhood of Hyderabad has recently begun with the implosion of these buildings to make way for a new 1.6 million-square-foot development.

The REIT has also received sanction from Princeton Digital Group for commencement of the second data centre in its Airoli west park. For the September-ended quarter, Mindspace Business Parks REIT recorded gross leasing of roughly 8 lakh sq ft, bringing its total leasing for the first half of the fiscal year to 1.1 million sq ft. 

The REIT increased its in-place rentals by 6.4% from a year ago to Rs 67 per sq ft a month.

 Nair said.

It acquired 2,400,000 square feet of rentable space in Chennai's Commerzone Porur for Rs 182 crores during the quarter. The acquisition consolidates the REIT's ownership of the undertaking to 100 percent. With this, Mindspace REIT's total leasable portfolio area has grown to 32.3 million sq ft with completed area of 26.1 million sq ft.The REIT's net operating income for the quarter rose 17.7% on-year to Rs 491 crores taking its net operating income for the first half of 2023-24 to Rs 946 crore. At quarter's end, its loan-to-value ratio (LTV) was 19.8%.

The REIT has proclaimed a distribution for the September quarter of Rs 284 crore, or Rs 4.79 per unit. Approximately 90% of this is in the form of tax-exempt dividends paid to unit holders. November 6 is the date of record for the distribution.

It raised Rs 500 crore through non-convertible debentures (NCDs) during the quarter. Around 56.1% of the outstanding debt of the REIT is fixed cost debt and average cost of borrowing stood at 7.8%.