Mindspace REIT files offer document for IPO

The offer consists of a fresh issuance of up to Rs 1,000 crore of units by Mindspace REIT and an offer for sale of aggregating up to Rs 3,500 crore.

K Raheja Corp, owner of some of the marquee commercial real estate properties like Mindspace, The Square, Commerzone, and Inorbit mall will be raising Rs 4,500 crore through REIT (Real Estate Investment Trust), an offer document filed by the company with Sebi (Securities and Exchange Board of India) on Friday stated. The REIT will have 29.5 million square feet of commercial space as part of the portfolio spread across Mumbai, Pune, Hyderabad and Chennai.

The offer consists of a fresh issuance of up to Rs 1,000 crore of units by Mindspace REIT and an offer for sale of aggregating up to Rs 3,500 crore. The proceeds of the issue will be primarily utilised for 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.

Of the 29.5 million sq.ft. of commercial assets that will be part of the Mindspace REIT portfolio, 23 million sq ft are completed and rent yielding, the area that is under construction is 2.8 million sq ft and future development area will be to the tune of 3.6 million sq ft. The portfolio has five integrated business parks and five independent offices, the offer document stated.

FE reported on July 17 that Mindspace REIT will be raising Rs 3,000-Rs 4,000 crore through REIT and will be filing the offer document with SEBI within this week. Mindspace REIT will be the second publicly traded REIT after Embassy and Blackstone raised over Rs 4,700 crore through an IPO in April 2019.