The transaction marks the listed Real Estate Investment Trust’s (REIT) first-ever third-party acquisition outside its existing portfolio parks.
The K Raheja Corp-backed REIT has bought the asset through acquisition of 100% equity in Mack Soft Tech (MSTPL), the owner of Q-City. Mindspace REIT has carried out the acquisition through its asset special purpose vehicle Horizonview Properties.
Following the acquisition, the asset will now be rebranded as ‘The Square, 110 Financial District’ and marks the REIT’s strategic entry into one of Hyderabad’s fastest-growing commercial micro-markets. The transaction is aligned with Mindspace REIT’s strategy of disciplined expansion within its core markets.
The asset located opposite the U.S. Consulate and within 1 km of the upcoming Wipro Circle metro station, offers robust last-mile connectivity. It is currently 65% leased and expected to benefit from Mindspace REIT’s tenant network and asset enhancement capabilities to fill up the remaining space.
“We have just closed our first large external acquisition, a decisive milestone in Mindspace REIT’s growth journey. The campus, located in the Financial District, further strengthens our foothold in Hyderabad. The market is India’s hottest GCC hub…With institutional-quality supply extremely tight and virtually no major investment-grade assets on the market, the timing is ideal,” said Ramesh Nair, CEO & MD of Mindspace Business Parks REIT.The gross acquisition price stands at Rs 496 crore, implying a capital value of Rs 6,130 per sq ft, and represents an 11.6% discount to an independent valuation. The deal delivers an attractive 9.9% implied cap rate and is expected to add Rs 53.5 crore to the REIT’s proforma net operating income on a stabilized basis, translating to a 2.6% boost to 2024-25 earnings. The transaction was funded through debt.Following the acquisition, Mindspace REIT’s Hyderabad portfolio will grow to over 16 million sq ft, while its overall portfolio will increase from 37.1 million sq ft to 37.9 million sq ft. The Gross Asset Value will rise to Rs 37,143 crore from Rs 36,647 crore, and the Loan-to-Value (LTV) ratio will edge up to 25.1% from 24.3%. The value-accretive acquisition will raise the Net Asset Value by Rs 1.8 per unit.
The deal strengthens Mindspace REIT’s Hyderabad presence to over 16 million square feet, in aggregate. Hyderabad is one of India’s most coveted commercial markets, characterized by high GCC demand, minimal institutional-grade vacancy, and strong tenant preference.
With Hyderabad now hosting over 350 global capability centres and robust demand from tech and BFSI occupiers, Mindspace REIT is strategically positioned to benefit from the city’s ongoing office space expansion westward.
Supported by a talent pool and progressive state policies, the city continues to attract key global occupiers. The Financial District, once a government-led vision, has evolved into a prime business corridor with robust expressway connectivity, expanding metro access, and world-class infrastructure.
Global organizations including Amazon, Google, Apple, Microsoft, Infosys, Wipro, TCS, and Honeywell already anchor in the micro-market. As unabsorbed demand shifts from Madhapur and HITECH City to Financial District and Gachibowli, due to limited supply and strong office demand, Hyderabad’s Western Corridor is firmly positioned for the next decade of GCC growth.
