Mindspace Business Parks REIT on Tuesday announced the acquisition of a 2.6 million square feet office asset in Chennai for an enterprise value of about ₹2,541 crore, marking a significant expansion of its presence in one of India’s fastest-growing office markets.

The REIT will acquire Sycamore Properties and Content Properties, which together own Commerzone Pallikaranai, a campus-style development located along the Pallavaram–Thoraipakkam Road (PTR) corridor. The board has also approved a preferential issue of up to ₹675 crore to part-fund the transaction.

This is Mindspace REIT’s second acquisition in Chennai since listing and takes its total acquisitions to 6.6 msf valued at around ₹8,800 crore. The deal is being executed at a 3.4 per cent discount to the average of two independent valuations, underscoring what the company described as disciplined capital allocation.

The asset spans 12.4 acres and includes 1.4 msf of completed space, with another 1.2 msf under development, expected to be delivered by March 2027. It is currently about 70 per cent occupied, with energy major Shell anchoring roughly 55 per cent of the leased area.

Mindspace REIT said the acquisition offers strong rental upside, with in-place rents at about ₹63 per square feet per month and recent transactions in the asset touching ₹85 psf. The under-construction portion is expected to drive future net operating income growth and returns.

Post-acquisition, the REIT’s portfolio will expand to 41.6 msf from 39 msf while gross asset value will rise to nearly ₹46,760 crore. Chennai’s share in the portfolio will triple to 9 per cent by area.

The transaction is part of a right-of-first-offer arrangement with sponsor K Raheja Corp and represents the fifth asset acquired from the sponsor pipeline.

Published on March 31, 2026