Due to significant changes in current market and economic conditions on account of global outbreak of the covid-19 pandemic, Mindspace Business Parks REIT has changed its business outlook in its draft IPO prospectus filed with SEBI.
In January 2020, Mindspace Business Parks REIT had filed draft papers with SEBI for initial public offering (IPO) to raise Rs.1,000 crore.
The REIT backed by K Raheja Corp says that the covid-19 pandemic has adversely affected their business, financial condition, results of operations, cash flows, liquidity and performance, and it may reduce the demand for commercial real estate in future.
Further, it says that its operations have been impacted due to the majority of tenants limiting their operating staff while opting to work from home. In fact, the future operations of the commercial real estate will depend on the severity of the pandemic and the actions taken to contain the covid-19 pandemic.
This REIT owns five integrated business parks and five quality independent offices, totalling 29.5 million sq.ft of total leasable area. The portfolio comprises 23 million sq.ft of completed area, 2.8 million sq.ft of the under-construction area and 3.6 million sq.ft of the future development area, as of March 31, 2020.
REITs pool money from various investors and invest in commercial properties generating rental income.