Mindspace REIT leases 4.5 lakh sq ft office space in December quarter
Mindspace Business Parks REIT has leased office spaces spread over 4.5 lakh sq ft in the quarter ended December, taking its cumulative leasing for the nine months of the current financial year to 1.6 million sq ft.
The REIT has witnessed a robust trend of expansionary demand with over 80% of the new and pre-leasing by existing occupiers across various sectors. Of the total fresh leases, it has re-leased 4 lakh sq ft office space at a 17.1% higher rent during the quarter.
The existing occupiers renewed their leases with 5.4% on-year higher rents at an average of Rs 68 per sq ft a month.
During the quarter, the REIT’s net operating income grew 10.4% from a year ago to Rs 473 crore, taking its nine-month net operating income to Rs 1,419 crore. It has declared distribution of Rs 285 crore or RS 4.80 per unit for the quarter.
Of this 89% is in the form of dividend, tax-exempt in the hand of unitholders.
“The recent SEZ move will boost leasing, and our teams are geared to lease SEZ spaces, enhance the portfolio occupancy, and convert idle assets into revenue. We are on track to deliver our 4.4 million sq ft development pipeline over the next 1-3 years…Our strategic asset acquisitions and prudent investments, backed by a strong balance sheet, ensure continued value for investors,” said Ramesh Nair, CEO.
K Raheja Corp Investment Managers, manager to Mindspace REIT.
The REIT has received board approval to divest a 26-acre land parcel and 6-lakh-sq-ft built office asset in Pocharam locality of Hyderabad. It has also secured approval to acquire 42,000 sq ft in its project Commerzone Yerawada, Pune helping consolidate ownership within the business park.
During the quarter, it raised Rs 150 crore through commercial paper at a
