en.Wedoany.com Reported - Indian real estate investment trust Mindspace Business Parks announced on March 31 the acquisition of approximately 2.6 million square feet of Grade A office space in Chennai for around ₹254.1 billion. This commercial real estate transaction involves the purchase of 100% equity in Sycamore Properties and Content Properties, which own the asset, and has been approved by the REIT manager's board of directors.

The office asset, named Commerzone Pallikaranai, is located along Pallavaram–Thoraipakkam Road and spans 12.4 acres. It currently has about 1.4 million square feet of completed space across two buildings, with an additional 1.2 million square feet under construction and expected to be delivered by March 2027. The campus is anchored by Shell, which leases approximately 55% of the space. Part of the commercial real estate transaction will be financed through the issuance of preferential units valued at up to ₹67.5 billion, subject to approval by unit holders and regulatory authorities.

Upon completion of the acquisition, the REIT's total leasable portfolio will increase from approximately 39 million square feet to 41.6 million square feet, and its total asset value will rise from about ₹4,413 billion to ₹4,676 billion. Chennai's share in the portfolio will expand from about 3% to 9%, enhancing geographical diversification across markets such as Mumbai, Hyderabad, Pune, and Chennai. This commercial real estate acquisition marks the REIT's second transaction in Chennai since its listing.

Ramesh Nair, Managing Director and CEO of the REIT, stated that Chennai is one of India's most resilient, high-growth office markets with the lowest vacancy rates. The asset offers institutional-grade infrastructure, a strong multinational tenant base, and long-term leases. As PTR Road emerges as a major office corridor in Chennai, with demand consistently outpacing supply, this commercial real estate acquisition will enable the REIT to capture future leasing demand and potential rental appreciation.

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