Mindspace Business Parks REIT inches Closer to IPO, Revises Draft Prospectus

MUMBAI: Mindspace Business Parks REIT, an entity jointly backed by realty developer K Raheja Corp and private equity major Blackstone Group, has revised its draft prospectus to raise Rs 1,000 crore through fresh issue of shares via an initial public offering (IPO).

Both the entities are expected to offer a part of their existing shareholding through the offer for sale.

In January, ET had reported that this offer for sale will be around Rs 2,000 crore taking the total issue size to Rs 3,000 crore.

The company has updated the filing to reflect the new business environment in the backdrop of the Covid-19 induced lockdown.

It has leased additional 7 lakh sq ft to tenants across various properties since April 1.

As per the revised filing with Sebi, it has completed additional 3.3 million sq. ft. of new office space since its previous filing last year.

“While we did not incur significant disruptions in our operations from Covid-19 during the financial year ended March 31, 2020 and collected 99.4% of our gross contracted rentals for the month of March 2020, our properties were not fully occupied by the tenants for the months of April and May 2020,” the revised draft prospectus said.

However, the company also added that it has collected 97.8% and 95.2% of its gross contracted rentals for the months of April and May 2020 during lockdown.

The company has reported net profit of Rs 513.9 crore for the year ended March on the back of total income of Rs 2,026.2 crore.

Its portfolio includes a total leasable area of 29.5 million sq ft with five integrated business parks and five independent offices across the Mumbai Metropolitan Region, Pune, Hyderabad, and Chennai.

As on March end, the total market value of its portfolio is Rs 23,675 crore, including the facility management division.

The company’s clients include the likes of Accenture, Qualcomm, UBS, JP Morgan, Amazon, Barclays, Facebook and Capgemini.

As of May end, committed occupancy of its portfolio stood at 92.4% and average rent was Rs 52.5 per sq ft.