Mindspace Business Parks REIT has announced the acquisition of Sycamore Properties and Content Properties for a combined INR 25.4 billion, strengthening its presence in Chennai’s Pallikaranai office corridor. The deal adds 2.6 million sq.ft. of Grade-A office space to its portfolio.
Mindspace REIT, backed by K Raheja Corp, continues its disciplined growth strategy with this acquisition, marking its second major deal in Chennai post-listing. The transaction enhances portfolio diversification across Mumbai, Pune, Hyderabad, and Chennai, while positioning the REIT to capture rising demand in one of India’s most resilient office markets.
Transaction Overview
The acquisition includes 100% shareholding in Sycamore Properties for INR 15.97 billion and Content Properties for INR 9.44 billion. Together, these assets form Commerzone Pallikaranai, a modern campus with IGBC and WELL Platinum certifications, designed to attract Global Capability Centres and large corporations.
Key Highlights
• Total acquisition size: 2.6 million sq.ft.
• Completed area: 1.4 million sq.ft.; under-construction: 1.2 million sq.ft. (delivery by March 2027)
• Anchor tenant: Shell, occupying ~55% of leased space
• Acquisition price: INR 25.4 billion, at a 3.4% discount to independent valuations
• Portfolio size expands to 41.6 million sq.ft.; Chennai’s share rises from 3% to 9%
Market Outlook
With Pallavaram-Thoraipakkam Road emerging as a prime corridor, rentals are expected to see strong growth, offering clear upside for Mindspace REIT’s unitholders.
Sources: Mindspace REIT press release, investor presentation