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Mindspace Business Parks REIT IPO

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Mindspace Business Park REIT (MBPR) is among the largest owners of quality office portfolio with a total leasable area of 29.5 msf and is one of the largest Grade A office portfolios in the country.

Initial offer of up to (*) Units (as defined hereinafter) of Mindspace Business Parks REIT (Mindspace REIT) for cash at a price of Rs (*) per Unit aggregating up to Rs. 4500 Crores consisting of a fresh issuance of up to (*) Units by Mindspace REIT aggregating up to Rs. 1000 Crores (Fresh Issue) and an offer for sale of up to (*) Units by the Selling Unitholders (as defined hereinafter) aggregating up to Rs. 3500 Crores (Offer for Sale and together with the Fresh Issue, the Offer ). Price Band: Rs.274 to Rs.275 per Unit. Minimum Order Quantity - 200 Units.

Why subscribe?

Higher Returns: The dividends received from REIT are tax free. Major component (~93%) of MBPR returns are expected to be from dividends, hence expected to yield a return of 7.74% - 8.3% FY22/FY23 compared to ~3% and 5% on FD and Debt MF respectively on post tax basis. Currently ~41% returns distributed by Embassy REIT are in the form of interest which taxable in the hands of investors.

Improving Cash flows at lower cost: Net proceeds from issuance of fresh units will be used to repay debt. Also raising funds at REIT level (Provisionally rated AAA by CRISIL/Jun2020) to replace debt at asset SPVs is expected to boost NDCF. Hence, improvement in yields is a possibility.

Key Risks: Slower absorption of commercial properties due to Covid-19

Suitability: Subscription recommended for investors seeking returns similar to debt asset class.

Mindspace Business Parks REIT IPO Subscription Details

Company

Mindspace Business Parks REIT

Issue Type

Book Building-REITs

Issue Size (In Crore)

4500-4500

Lot Size

200

Open Date

27 Jul

Close Date

29 Jul

Offer Price

274.00

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Key Portfolio Highlights:

5 integrated business parks & 5 independent offices.

  • Presence in 4 key office markets namely Mumbai region, Hyderabad, Pune and Chennai. These 4 markets account for 58% of total Grade A net absorption in the top 6 markets in India.
  • Portfolio Size 29.5 msf, 23msf of Completed Area, 2.8 msf of Under Construction Area and 3.6 msf of Future Development area as of March, 2020.
  • Well diversified portfolio with 172 tenants and no single tenant contributing more than 7.7% of Gross Contracted Rent(GCR). Tenant mix of Indian Corporates and leading MNCs such as Accenture, Qualcomm, BA Continuum, JP Morgan, Amazon, Schlumberger, UBS, Capgemini, Facebook, Barclays and BNY Mellon as on Mar 31,2020. MNC’s account for 84.9% of GCR.
  • Stable portfolio, higher rents: The portfolio has 92% committed occupancy (2.4% higher than avg occupancy in portfolio mkts) and WALE of 5.8yrs. Rental growth has been 6.7% (320bps higher than avg experienced in portfolio markets in the last 3years. Portfolio NOI is expected to grow by 59.2% between FY20-23 driven by rent escalations, MTM opportunities, leasing of vacant and under-construction area. Existing rent agreements have the potential to be released at atleast 22.6% higher on account of higher growth in market rent vis-à-vis existing long term agreements.

How to apply IPO on 5paisa app?

  • Login to your 5paisa Mobile Trading App and select the issue in the current IPO section
  • Enter the number of lots and price at which you wish to apply for
  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
  • You will receive a notification to block funds in your UPI app
  • Approve the block request

Mindspace Business Parks REIT IPO Frequently Asked Questions

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Contact Details of Mindspace Business Parks REIT IPO

Company Contact Information

Mindspace Business Parks REIT IPO
Raheja Tower Level 8 Block G,
C-30 Bandra Kurla Complex,
Mumbai, Maharashtra 400051.

Phone: 91-22-2656 4000
Email: reitcompliance@mindspacereit.com
Website: https://www.mindspacereit.com

Mindspace Business Parks REIT IPO Register

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Mindspace Business Parks REIT IPO Lead Manager(s)

  • Amit Capital Private Ltd
  • Axis Caital Ltd
  • Citigroup Global Markets India Private Ltd
  • CLSA Indi Private Ltd
  • DSP Merrill Lynch Ltd
  • HDFC Bank Ltd
  • ICICI Securities Ltd
  • DFC Securities Ltd
  • M Financial Ltd
  • Kotak Mahindra Capital Compay Ltd
  • Morgan Stanley India Company Private Ltd
  • Nomura Financial Advisory & Securities India P Ltd
  • UBS Securities Private Ltd

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