Mindspace Business Parks REIT (MINDSPACE) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of two institutional-grade office assets in Chennai's PTR corridor, including International Tech Park Chennai (ITPC RR), expands the portfolio to 6.3 million sq ft and positions the acquirer among the top two office asset owners in the city.

• Largest external acquisition since listing, aligning with the growth strategy and enhancing geographic diversification in a high-growth, supply-constrained market.

• Strategic location on Radial Road and proximity of both assets (10 minutes apart) enable operational synergies and flexibility for tenant expansion or consolidation.

• Chennai's office market benefits from infrastructure challenges in competing cities, driving demand and supporting rental growth.

• Dual asset approach with simultaneous acquisition of Commerzone Pallikaranai and ITPC RR drives synergies and market leadership.

Financial terms and conditions

• Total acquisition consideration is INR 5,500 crore for both assets, with ITPC RR acquired for INR 30 billion (51% stake by acquirer, 49% by co-investor), subject to debt and closing adjustments.

• Funded through a mix of debt and equity, including a preferential issue of units to the sponsor and all-cash payment for ITPC RR.

• Commerzone Pallikaranai involves a preferential issue of up to INR 675 crore to the sponsor, subject to unitholder approval.

• Acquisitions completed at a discount to independent valuation (2–2.6%), with ITPC RR's implied cap rate at 7.7%.

• The market value of ITPC RR as of March 15, 2026, is estimated at INR 30,613.58 million for 100% interest.

Synergies and expected cost savings

• Clustering of assets in the PTR corridor enables pricing advantage, higher tenant stickiness, and rental upside.

• Enhanced ability to offer occupiers expansion/consolidation options within the same corridor and strong leasing advantage due to institutional supply constraints.

• The asset is expected to add approximately INR 2,409 million to NOI on a stabilized basis, with 51% attributable to the acquirer.