K Raheja Corp inks pact for 0.5 million sq ft office joint development in Pune – ET RealEstate

MUMBAI: Realty developer K Raheja Corp has entered into a joint development agreement to develop a 3-acre prime land parcel in Pune’s Baner locality. The company has formed an alliance with a Pune-based developer Aditya Shagun Developers to develop the latter’s plot into a commercial office project.

The said land parcel has a total development potential of half a million sq ft. The project, once completed, is expected to be added to K Raheja Corp-Blackstone Group-backed Mindspace Business Parks REIT, India’s second listed Real Estate Investment Trust.

Currently, Mindspace Business Parks REIT’s portfolio consists of five integrated business parks and five independent offices aggregating 29.5 million sq ft of total leasable area.

“We will be developing the project together. Both the companies will be responsible for the branding and marketing of this project. We have already started the process to secure permissions for the development and hope to complete the entire project in 24-30 months by 2024,” said Rinku Shewani, partner, Aditya Shagun Developers while confirming the alliance.

The deal marks K Raheja Corp’s foray into the west Pune market that accounts for around 40% of total office space leasing in the city. The ongoing monthly rentals in micro-market of Baner range between Rs 75 to Rs 85 per sq ft.

“The western Pune corridor especially Baner and Balewadi is short on grade A quality office supply and hence this will be a very strategic development by K Raheja Corp. The profile of occupiers in this corridor is a mix of product development, digital, information technology-enabled services and research & development companies,” said Sanjay Bajaj, MD – Pune, JLL India, the advisor to this transaction.

ET’s email query to K Raheja Corp remained unanswered until the time of going to press.

Indian commercial real estate has started to make steady progress towards a sharp bounce back with rising space leasing despite the concerns of the emergence of work from the home model.

Pune, one of the key information technology and IT-enabled services hubs in the country, has seen a 128% sequential jump in office space leasing in the quarter ended December. The markets of Bengaluru and Pune continued to witness single digit vacancy levels, which augurs well for a strong rebound in these markets as economic and business conditions are expected to gradually improve in the coming quarters.

Large property developers with established market positions, strong balance sheets and adequate liquidity have weathered the ongoing uncertain business environment caused by Covid-19 pandemic better than smaller entities.

Consequently, the ongoing consolidation of the sector is expected to accelerate further, with larger and more established players gaining increased market share.



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DWF Mindcrest leases 2.80 lakh sq ft office space in Pune – ET RealEstate

MUMBAI: Global alternative legal services provider DWF Mindcrest has leased over 2.80 lakh sq ft office space at Mindspace Business Parks REIT co-owned commercial complex Gera Commerzone in Pune‘s Kharadi locality.

Through this 10-year tenure lease, the company will occupy 1.12 lakh sq ft office space on the two floors of the 7-lakh-sq-ft commercial building in the first phase by January and has an option of taking up an additional 1.68 lakh sq ft space for expansion.

The company will be paying rentals of nearly Rs 80 per sq ft month, taking the total value of the transaction to Rs 125 crore over the total tenure. This will be DWF Mindcrest’s largest office in Asia Pacific.

“The new office in Pune will be a key part of the strategy for DWF Mindcrest to scale up managed services portfolio, thereby providing end to end alternate legal services solutions to clients across the globe,” said Shravan Mehta, vice president – Finance, DWF Mindcrest.

DWF Mindcrest currently operates with 444 employees in Pune. The new office at Gera Commerzone will have the capacity to go live with 1,000 employees to begin with, along with supporting future growth in due course of time.

“Commercial property market fundamentals, despite the ongoing Covid19 pandemic, continue to remain promising with lower single digit vacancy combined with strong demand potential in the upcoming quarters,” said Sanjay Bajaj, Managing Director – Pune, JLL that acted as the transaction advisor.

India’s commercial real estate clocked 11 million sq ft of leasing deals in the past three months and negotiations for an additional 8 million sq ft are underway.

Earlier this week, flexible office space operator Simpliwork Offices also inked a long-term lease for 2.30 lakh sq ft office space at Sky One Corporate Park in Pune. This transaction is the largest Pune office lease signed till date in 2020.



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Mindspace Business Parks REIT rises nearly 11% in debut trade – ET RealEstate

NEW DELHI: Mindspace Business Parks REIT made its market debut on Friday, with a premium of nearly 11 per cent against its issue price of Rs 275 per unit. The units of the REIT listed at Rs 304, reflecting a gain of 10.54 per cent from the issue price on the BSE. Later, it touched a high of Rs 308.90, zooming 12.32 per cent.

On the NSE, it debuted at Rs 302, a rise of 9.81 per cent.

The Rs 4,500-crore public issue of Mindspace Business Parks REIT was subscribed nearly 13 times late last month.

Real estate investment trust (REIT), a popular instrument globally, was introduced in India a few years ago aimed at attracting investment in the real estate sector by monetising rent-yielding assets.

It helps unlock the massive value of real estate assets and enable retail participation.

The price band for its public issue was fixed at Rs 274-275 per unit.

A filing on the BSE earlier in the day noted that trading members of the exchange are informed that effective August 7, 2020, the units of Mindspace Business Parks REIT are listed and admitted to dealings on the exchange in the list of ‘IF’ group securities.

The offer was managed by Morgan Stanley India Company, DSP Merrill Lynch, Axis Capital, Citigroup Global Markets India, JM Financial, Kotak Mahindra Capital Company, CLSA India, Nomura Financial Advisory and Securities (India), UBS Securities India, Ambit Capital Private, HDFC Bank, IDFC Securities and ICICI Securities.



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Mindspace Business Parks REIT inches closer to IPO, revises darft prospectus – ET RealEstate

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.



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