Mindspace Business Parks Reit · NSE:MINDSPACE.RR
Mindspace Business Parks Reit — Merger or Acquisition (January 2025)
24 slides from Mindspace Business Parks Reit's merger presentation, Jan 29, 2025
Slide 1: Mindspace Business Parks REIT Acquisition Update
Mindspace Business Parks REIT Acquisition Update 29 Jan, 2025 mindspacereit.com
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation (“Presentation”) is made, or by reading the Presentation materials, you agree to be bound by the following limitations: This Presentation (a) is for information purposes only without regards to specific objectives, financial situations or n
Slide 3: Disclaimer
Disclaimer This Presentation is not intended to be an offer or placement for the purposes of the Alternative Investment Fund Managers Directive (“AIFMD”), and any “marketing” as defined under AIFMD may only take place in accordance with the national private placement regimes of the applicable Europe
Slide 4: Table of Contents
Table of Contents Acquisition Opportunity: Commerzone 5 Raidurg, Hyderabad Hyderabad Office Market 16 MREIT: At a Glance 20 Note: FY25 numbers, wherever used in this presentation, are based on actual numbers for YTD 9M FY25 and considering Q4 FY25 to be same as Q3 FY25 mindspacereit.com
Slide 5: Acquisition Opportunity: Commerzone Raidurg, Hyderabad
Acquisition Opportunity: Commerzone Raidurg, Hyderabad Commerzone m i n d s p aRaidurg, c e r e i t .Hyderabad com Actual Image
Slide 6: Commerzone Raidurg – Marquee Asset at a Strategic Location with Stable Long Term Lease
Commerzone Raidurg – Marquee Asset at a Strategic Location with Stable Long Term Lease c.2.80 msf Total Leasable Area(1) c.1.82 msf Sustain’s Area(2) 100% Committed Occupancy on Sustain’s area c. 12 years WALE INR c. 22.0 Bn Gross Asset Value(3) 15% Rent escalation every 3 Years; 1st escalation in J
Slide 7: Leased to a Marquee Tenant – World's Leading Wireless Technology Innovator
Leased to a Marquee Tenant – World’s Leading Wireless Technology Innovator Commerzone Raidurg c.100% area leased to Qualcomm A Fortune 500 company Market Cap. c.USD 189 Bn(1) Largest campus of Qualcomm in India A testimony of India’s prominence in GCC Space Largest deal in India since 2018 (2) m1.i
Slide 8: Strategically Located in Hyderabad's Largest Office Micro Market
Strategically Located in Hyderabad’s Largest Office Micro Market (1) Located close to our existing Mindspace portfolio Hitech Well connected to transit Holiday Inn Infrastructure Express c. 1 km from Mindspace Junction Raidurg Lemon Tree The Westin Durgam Cheruvu c. 2.0 kms from Raidurg Metro Premie
Slide 9: Value creation through acquisition of Asset with Growth Potential
Value creation through acquisition of Asset with Growth Potential Grade A Asset • Commerzone Raidurg located in Madhapur, Hyderabad’s largest micro market enhancing located in Prime Commercial market Mindspace REIT’s portfolio size in Madhapur to c.15 msf • Asset leased to Qualcomm, a high-quality t
Slide 10: Accretive acquisition for Unitholders across key metrics
Accretive acquisition for Unitholders across key metrics Acquisition of premium asset to aid long term returns to unitholders Implied Cap Rate (NOI Yield) Distribution Yield NAV % % INR per unit 8.1% 7.2% 395.5 c. 0.7% 7.4% c. INR 2.9 p.u. c. 1.4% 392.6 5.8% Existing MREIT Commerzone Existing MREIT
Slide 11: Acquisition aligns well with the growth strategy of Mindspace REIT
Acquisition aligns well with the growth strategy of Mindspace REIT NOI Growth GAV Growth INR Mn INR Bn 22,106 335.5 c. 8.2% c. 7.0% 313.5 20,437 Existing MREIT Portfolio Post Acquisition Existing MREIT Portfolio Post Acquisition Existing MREIT NOI is Proforma NOI (2) of the REIT Existing GAV of MREI
Slide 12: Acquisition at an Attractive Discount
Acquisition at an Attractive Discount c. 7.5% Discount to Valuation(1) Acquisition Price and Equity Value Particulars INR Mn INR Mn Gross Acquisition Price 20,380 22,104 21,939 Add/ (Less): 20,380 Net Debt(2) (13,812) Other Assets/ Liabilities(3) (440) Base Consideration 6,129 Net debt includes borr
Slide 13: Acquisition to help enhance Occupancy and Portfolio Diversification
Acquisition to help enhance Occupancy and Portfolio Diversification Particulars Before Acquisition Post Acquisition Total Leasable Area (1) msf 34.8 (1) 36.6 (2) Committed Occupancy (excl Pocharam) 91.5% 92.0% GAV(3)(4) (INR Bn) 313.5 335.5 LTV (3)(5) 22.6% 25.3% WALE (Years) 7.2 7.5 Sufficient Debt
Slide 14: Acquisition Guided by Strong Governance Standards
Acquisition Guided by Strong Governance Standards Valuation • Two independent valuations undertaken Reviewed by • Review of Valuation Method and Assumptions done by 2 Independent Property IPCs Consultants Independent • Acquisition approved by Investment and Audit Committees and Independent Director
Slide 15: Transaction Process Validated by Independent Advisors
Transaction Process Validated by Independent Advisors Transaction Advisor Independent Valuers Independent Reviewers 1 ANVI Technical L Anuradha Advisors India Pvt Ltd Renowned Due Diligence Advisors Financial & Tax DD ESG DD Legal DD Technical DD Title DD KPMG Envint m1.i n dIndependent s p a c e r
Slide 16: Hyderabad Office Market
Hyderabad Office Market mindspacereit.com
Slide 17: Hyderabad – Second largest Tech hub of India
Hyderabad – Second largest Tech hub of India Progressive government policies and Infrastructure growth are key market drivers 9.5 Lakh 355+ Tech workforce in Telangana GCCs as of FY2024 driven by Hyderabad T-Hub 2.0, the world’s largest technology incubator (1) ~6.2 msf 2nd Avg. Annual net Highest n
Slide 18: Madhapur as the preferred office market drives highest absorption in Hyderabad
Madhapur as the preferred office market drives highest absorption in Hyderabad 67.5 c. 70% > Rs 80 2nd msf Rs psf pm highest 60% share of City’s Share of net absorption in last Rental outperforming other Aggregate net absorption office stock 5 years Hyderabad micro markets between 2019 & 2024 across
Slide 19: Madhapur: Hyderabad's most sought-after Micro-Market
Madhapur: Hyderabad’s most sought-after Micro-Market Continued growth in rentals due to limited office Strong absorption helping reduce vacancies supply and land availability Rental INR psf/ month 14.9% 15.0% 11.4% 80-85 10.0% 9.9% 10.0% 73 74 71 8.3 Absorption exceeding Supply 67 5.0% 6.2 6.4 58 5.
Slide 20: MREIT: At a Glance
MREIT: At a Glance mindspacereit.com
Slide 21: Delivered Robust Performance
Delivered Robust Performance Cumulative distribution of INR 81.8 p.u. since listing c. 21.9% c. 20 msf (1) Releasing Spread on Gross Leasing 13.1 msf c. INR 48.5 Bn c. 13.6 % Total distribution(3) Annualized returns(7) c. 2.7 msf c. 8.07 % p.a.p.m. Delivered New Cost of Debt as on 31 Developments De
Slide 22: Structure of Mindspace REIT post acquisition
Structure of Mindspace REIT post acquisition Unitholders Investment In Distribution Mindspace REIT Investment Manager Trust Trustee K Raheja Corp Investment Mindspace Business Parks REIT Axis Trustee Services Limited Managers Private Limited(3) SPV: K Raheja SPV: Avocado SPV: SPV: KRC SPV: SPV: Giga
Slide 23: Key Definitions
Key Definitions Term Definition Term Definition Acquisition / Acquisition of equity shares held by Sellers in Sustain Properties by Mindspace REIT Leased Area The Completed Area of a property which has been leased or rented out in accordance with an Commerzone agreement or letters of intent entered
Slide 24: Thank You
Thank You mindspacereit.com
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