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Mindspace Business Parks REIT has a quality office portfolio in Mumbai, Hyderabad, Pune and Chennai. The business parks in Mumbai are Mindspace Airoli East Business Park, Mindspace Airoli West Business Park, Paradigm Mindspace Malad and The Square, BKC(2).
The properties in the Pune include Commerzone Yerwada Business Park, Gera Commerzone Kharadi Business Park and The Square, Nagar Road. The Chennai property of the company is Commerzone Porur. And, the office parks in Hydrabad are Commerzone Pocharam and Mindspace Madhapur.
The total leasable area of Mindspace Business Parks are 12.1 msf, 11.6 msf, 5.0 msf and 0.8 msf in Mumbai, Hyderabad, Pune and Chennai, respectively. With total leasable area of 29.5 msf, it is one of the largest Grade-A office portfolios in India.
The under-construction area of the company is 2.8 m sq ft. The future construction of Mindspace Business is spread across Hyderabad, Chennai, and Mumbai in a 3.6 m sq ft area.
Real Estate Investment Trust (REIT) Explained
Under the REIT Regulations Mindspace REIT has to invest a minimum of 80% of the value of its assets in completed and rent and/ or income-generating properties.
REIT Regulations also impose restrictions on certain investments including investments in vacant land, agricultural land, or mortgages other than mortgage-backed securities and assets located outside India.
As per REIT Regulations, the portfolio of the Mindspace REIT is required to be maintained for a period of minimum 3-years from the date of purchase or completion.
Real Estate Investment Trust (REIT) Explained
Competitive Strengths
1. Diversified and quality tenant base
2. Strong industry fundamentals
3. Experienced management team with KRC group support
4. Stable cash flows
Company Promoters:
Cape Trading LLP and Anbee Constructions LLP are the promoters of the company.
Company Financials:
| Particulars | For the year/period ended (₹ in Million) | ||||
|---|---|---|---|---|---|
| 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | 31-Mar-17 | ||
| Total Assets | 1,12,224 | 91,437 | 84,738 | 81,293 | |
| Total Revenue | 20,262 | 16,797 | 15,022 | 14,354 | |
| Profit After Tax | 5,139 | 5,154 | 1,610 | 2,313 | |
Objects of the Issue:
The proceeds will be utilised towards the following objects:
1. Partial or full pre-payment or scheduled repayment of certain debt facilities of the Asset SPVs availed
from banks/financial institutions (including any accrued interest and any applicable penalties/ premium);
2. Purchase of NCRPS of MBPPL; and
3. General purposes
Mindspace REIT Details
| IPO Date | Jul 27, 2020 – Jul 29, 2020 |
| Issue Type | Book Built Issue REIT |
| Issue Size | [.] Eq Shares of ₹ (aggregating up to ₹4,500.00 Cr) |
| Fresh Issue | [.] Eq Shares of ₹ (aggregating up to ₹1,000.00 Cr) |
| Offer for Sale | [.] Eq Shares of ₹ (aggregating up to ₹3,500.00 Cr) |
| Face Value | ₹ per equity share |
| IPO Price | ₹274 to ₹275 per equity share |
| Market Lot | 200 Shares |
| Min Order Quantity | 200 Shares |
| Listing At | BSE, NSE |
| Market Cap (₹ Cr.) | 23675 |
Mindspace REIT Tentative Date / Timetable
| Bid/Offer Opens On | Jul 27, 2020 |
| Bid/Offer Closes On | Jul 29, 2020 |
| Finalisation of Basis of Allotment | Aug 6, 2020 |
| Initiation of Refunds | Aug 7, 2020 |
| Credit of Shares to Demat Acct | Aug 7, 2020 |
| IPO Shares Listing Date | Aug 12, 2020 |
Mindspace REIT Lot Size and Price (Retail)
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 200 | ₹55,000 |
| Maximum |
Net Issue
- Institutional Investors: 75% of the net offer
- Non Institutional Investors: 25% of the net offer