Real estate developer K Raheja and US private equity firm Blackstone Group have filed draft offer document with SEBI to launch India’s second REIT, Mindspace Business Parks REIT. Last year, Embassy group and Blackstone group had launched India’s first REIT, Embassy Office Parks REIT.
REITs pool money from various investors and invest in commercial properties generating rental income.
Incidentally, Blackstone group backs both the REITs. The draft prospectus shares that the existing shareholders K Raheja and Blackstone Group will sell some of their stake in the REIT through these offerings.
Mindspace Business Parks REIT aims to raise Rs.1,000 crore. Mindspace said it would use some of these funds to repay its debt. As of September 30, 2019, the total outstanding debt of Mindspace is Rs.6,900 crore.
This REIT owns an office portfolio in four key markets of India and has a total leasable area of 29.5 million sq.ft. The portfolio comprises 19.8 million sq.ft of completed area, 6.1 million sq.ft of the under-construction area and 3.6 million sq.ft of the future development area, as of June 30, 2019.