Mindspace Business Parks Reit · NSE:MINDSPACE.RR
Mindspace Business Parks Reit — Non-Deal Roadshow (May 2023)
43 slides from Mindspace Business Parks Reit's roadshow presentation, May 2023
Slide 1: Roadshow Presentation May 2023
Roadshow Presentation May 2023 mindspacereit.com 1
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: Sponsor Pedigree
01 Sponsor Pedigree mindspacereit.com 3
Slide 4: Sponsored by One Of India's Leading Real Estate Players
Mindspace REIT: Sponsored by One Of India’s Leading Real Estate Player Experience of over 4 decades Pan-India presence Office Hospitality Malls Residential Retail 3,000+ (1) operational hotel 4 operational malls across Developed residential Operates 270+ retail Developed >36 msf keys 2.2 msf project
Slide 5: Longstanding Execution Track Record and Institutional Experience
Longstanding Execution Track Record and Institutional Experience Deep Real Estate Partnerships with leading Expertise institutional investors • Over 4 decades of • Strong experience of experience in real-estate working with institutional investors like GIC, Blackstone, JP Morgan, etc. across multipl
Slide 6: Commercial Portfolio Spanning Key Micro-Markets
Commercial Portfolio (REIT + Sponsor Assets) Spanning across Key Micro-Markets 32.0 msf spread across 10 integrated eco-systems of the Commercial Portfolio carved into listed entity ‘Mindspace Business Parks REIT’ Well recognized commercial brands 'Mindspace’, 'Commerzone’ & ‘The Square’ >53 msf (1)
Slide 7: Pioneers in Creating Integrated Business Districts
Pioneers in Creating Integrated Business Districts • Foresight to go to new areas and develop business districts which have grown to become major commercial hubs • Land which was once enveloped with boulders and rocks was successfully converted into one of the largest and most preferred business dis
Slide 8: Overview
02 Overview mindspacereit.com 8
Slide 9: Mindspace Business Parks REIT Portfolio Overview
Mindspace Business Parks REIT Portfolio Overview One of the largest Grade-A office portfolios in India o Sponsored by K Raheja Corp. o Listed in Aug-20; was oversubscribed ~13x 32.0 msf c.89.0% o Substantially completed and rent generating portfolio Committed Occupancy Total Leasable Area (1) on 25.
Slide 10: Structure: Efficient structure aiding higher tax-free distributions
Structure Efficient structure aiding higher tax-free distributions Unitholders Investment in Distribution Mindspace REIT Investment Manager Trust Trustee K Raheja Corp Mindspace Business Axis Trustee Services Investment Managers Parks REIT Limited LLP SPV: K Raheja IT Park (Hyderabad) Ltd., Intime P
Slide 11: Governing Board of the Manager
Governing Board of the Manager Six-member board with majority Independent Directors and an Independent Chairman Deepak Ghaisas Manisha Girotra Bobby Parikh Independent Member (Chairman) Independent Member Independent Member Experience Experience Experience • Chairman of Gencoval Group of • Chief Exe
Slide 12: Unitholding Pattern as on Mar 2023
Unitholding Pattern as on 31 Mar 2023 Unitholding Summary INR 194 Bn 37 % Market Cap (1) % Free- float 593 Mn units Unitholding Pattern (Market Cap : INR 194 Bn) (1) MF NIIs 9.8% NPS Insurance 0.1% 0.2% 1.2% AIFs 0.7% Sponsors & Sponsor Public FIIs Total Group (Others) 21.4% Unitholders 63% 37% 52,4
Slide 13: Premier Offerings in Mumbai Region
Premier Offerings in Mumbai Region Mindspace Airoli East Mindspace Airoli West Mumbai Region | 5.6 msf Mumbai Region | 5.2 msf Completed Area: 4.7 msf; Committed Occupancy: 88.3% Completed Area: 4.9 msf; Committed Occupancy: 70.7% Paradigm, Mindspace Malad The Square, BKC Mumbai Region | 0.7 msf Mum
Slide 14: Premier Offerings in Pune
Premier Offerings in Pune Gera Commerzone Kharadi Pune| 2.9 msf (1) Completed Area: 1.9 msf; Committed Occupancy: 100.0% Commerzone Yerwada The Square, Nagar Road Pune | 1.7 msf (1) Pune | 0.8 msf Completed Area: 1.7 msf; Committed Occupancy: 99.9% Completed Area: 0.7 msf; Committed Occupancy: 100.0
Slide 15: Premier Offerings in Hyderabad & Chennai
Premier Offerings in Hyderabad & Chennai Mindspace Madhapur Hyderabad | 13.1 msf Perspective Completed Area: 9.5 msf; Committed Occupancy: 95.4% Mindspace Pocharam Commerzone Porur Hyderabad | 1.0 msf Chennai | 0.9 msf (1) Completed Area: 0.6 msf; Committed Occupancy: 37.5% Completed Area: 0.9 msf;
Slide 16: Redevelopment at Mindspace Madhapur
Redevelopment at Mindspace Madhapur Value Maximization throughout the Asset Lifecycle Legacy Buildings Redevelopment 1B+G+6 Office floors B1A-1B B7&8 Leasable Area 0.39 msf(1) 0.36 msf(1) 3B+G+6P+15 Office floors Redevelopment 3.4x 4.4x Leasable Area 1.31 msf(1) 1.61 msf(1) Strategic Located within
Slide 17: Value Enhancement via Venturing into Newer Asset Classes
Value Enhancement via Venturing into Newer Asset Classes Data Centers are emerging and high growth verticals B10 – DC B8 - Perspective Completed and Handed over block to the client Committed block • Pre-Committed two data centre buildings to Princeton Digital Group (PDG) at Mindspace Airoli West wit
Slide 18: Robust Development Pipeline in Each of Our Micro-markets
Robust Development Pipeline in Each of Our Micro-markets Historical development and expansion potential of our Portfolio 6.7 msf area added 6.2 msf in development pipeline Development pipeline (msf) 3.3 3.7 2.5 1.9 0.9 0.6 1 FY20 FY21 FY22 FY23 Area under-construction Future development Select Under
Slide 19: Value Creation by Developing Integrated Business Eco-systems
Value Creation by Developing “Integrated Business Eco-systems” Biophilic Design interweaving the elements of Nature into Workspaces at Commerzone Kharadi, Pune Expansive Central Podium Spacious Recreational Spaces Outside Seating Biophilic Landscape mindspacereit.com 19
Slide 20: Value Creation by Developing Integrated Business Eco-systems
Value Creation by Developing “Integrated Business Eco-systems” Commerzone Kharadi, Pune Aesthetic Lobby enhancing the entry experience Spacious lobby with Amphitheather Food Court Day Care Facility for Clients mindspacereit.com 20
Slide 21: Premiere Developments at Mindspace Airoli (W)
Premiere Developments at Mindspace Airoli (W), Mumbai Region Immersive Experience with Grand Entrance Lobbies mindspacereit.com 21
Slide 22: Re-energizing Parks with Building and Infra Upgrades
Re-energizing Parks with Building and Infra Upgrades Case Study - Mindspace Airoli East, Mumbai Region Revamping the Re-energised Renovation of Pedestrian Lightings & Refurbished building’s lobbies Entrance connection Signages Hardscape & exterior façade Gate under the Landscape podium Before After
Slide 23: Re-Energizing Our Parks – Mindspace Airoli East
Re-Energizing Our Parks – Mindspace Airoli East Energized & Appealing Entry Points Attractive Aesthetics & Outside Seating placed across park Food Court Upgrade – Easier F&B access to clients Attractive Aesthetics mindspacereit.com 23
Slide 24: Mindspace Madhapur – Recreational Zones across the Park
Mindspace Madhapur, Hyderabad – Recreational Zones across the Park Amphitheater at the Entrance Lobby Recreational Spaces for tenants Vantage Café - Well spread F&B spaces across the Park Landscape & Outside Seating Upgrade mindspacereit.com 24
Slide 25: ROFO Assets to Add Further Scale And Growth
ROFO Assets to Add Further Scale And Growth Strong pipeline spread across Mumbai Region, Chennai and Hyderabad Current Current Hyderabad | 1.8 msf 3 currently Commerzone Raidurg identified assets Status: • 1.8 msf pre-leased • Tenant has started fit-out work in the premises • OC received 8.6 msf Per
Slide 26: Diversified Portfolio of Marquee Tenants
Diversified Portfolio of Marquee Tenants Top 10 tenants contributing 32.2% (Mar 23) vs. 41.6% (Mar 20) Diversified tenant mix across sectors Top 10 tenants Gross Contracted Rentals contribution (32.2%) (1) % split by Gross Contracted Rentals (1) % of total Gross Contracted Rentals Manufacturi # of p
Slide 27: Building Ecosystems Catering to the Needs of Quality Workforce
Building Ecosystems Catering to the Needs of Quality Workforce Building ecosystems catering to the needs of Technology focused management quality workforce initiatives CERTIFICATIONS Best in the class Sewage Treatment BUSINESS UPTIME Saving fresh water & 100% recyclable quality RELIABILITY Infrastru
Slide 28: Technology focused Initiatives Enhancing Tenant Experience
Technology focused Initiatives Enhancing Tenant Experience Unique Biosonification Experience at Mindspace Airoli (W) Infrastructure monitoring operational center (IMOC) • Delivering seamless integration with Integrated • Unveiled a first-of-its-kind Musical Plant Parlor at Building Management System
Slide 29: Tenant Engagement Initiatives across Assets
Tenant Engagement Initiatives across Assets Sports Engagement - Inter-corporate football tournaments Navratri Celebration - ‘Dandiya Bash’ National Farmer’s Day - Organized Urban Farming; ~300 associates IDCR Marathon 2023 at Mindspace Madhapur participated mindspacereit.com 29
Slide 30: Steady Improvement in Physical Occupancy across Our Parks
Steady Improvement in Physical Occupancy across Our Parks Employers are Firmly Working on Return to Office Policies 56% 50% 40% 36% 31% 23% 13% Mar-22 Apr-22 Jun-22 Jul-22 Sep-22 Dec-22 Apr-23 Driving Physical Occupancy at Our Parks Consistent portfolio Portfolio premiumization Enhancing offerings v
Slide 31: Operating/Financial Highlights
03 Operating/ Financial Highlights mindspacereit.com 31
Slide 32: Growth Trajectory Since April 2020
Growth Trajectory Since April 2020 Demonstrated strong Gross Leasing as macroenvironment continues to improve 12.2 msf 7.5 msf 4.7 msf Gross Leasing Re-leased New & Vacant (Incl. hard option) area Leased 30+ 25.7 % 8.3 % Net expansion of Re-leasing Spread(1) MTM opportunity as tenant base on 31 Mar
Slide 33: Mindspace REIT – At a Glance (FY23)
Mindspace REIT – At a Glance (FY23) 1 Operating Highlights 4.1 msf 2.5 msf 1.6 msf 26.3 % INR 66 psf/month 1.9 msf Average Gross Leasing (1) New and Vacant Re-Leased Area (1) Re-leasing Spread (2) New Area Rent achieved Area Leased on 2.5 msf Completed (3) on Gross Leasing 2 Financial Highlights INR
Slide 34: Strong Financial Performance Since Listing in August 2020
Strong Financial Performance Since Listing in August 2020 Delivered 36.1% cumulative returns for Unitholders Since Aug-2020 INR 47.1 p.u. 7.6 % p.a. 17.9 % Debt outstanding Fixed cost Diversified debt book 53% Weighted Average Loan to Market 47.5% Total distribution till Cost of Debt as on Value(1)
Slide 35: Mindspace REIT | Positioned for Growth
Mindspace REIT | Positioned for Growth One of the Largest Grade A Office Portfolios in India Large, Stable Portfolio, Portfolio Growth Potential Embedded Growth Organic potential of 6.2msf, ROFO pipeline of 8.5msf, Low LTV of 17.9% to support acquisitions 89% Committed Occupancy, 8.3% MTM Long-term
Slide 36: Market Overview
04 Market Overview mindspacereit.com 36
Slide 37: CY22 was the 2nd Best Year for India Office
CY22 was the 2nd Best Year for India Office MREIT Owns a Diversified Portfolio Focusing on Gateway Markets with Long Term Potential Growth of Grade A Office Stock (msf, Top-7 markets) Top 7 Office Markets - Completed Stock MREIT Pune Markets 740 749 10% Hyderabad 611 15% Chennai 9% 496 Kolkata 4% St
Slide 38: India: Core for Fortune 500 Companies to Establish GCC Eco-system
India: Core for Fortune 500 Companies to Establish GCC Eco-system Key Drivers of India GCC Story Number of GCCs to Cross 2,300 over next 3 years 2,300 Favorable Government IT Sector Policies Robust Infrastructure Competitive office ecosystem rentals 1,790 Large Tenant Pool H1 CY22 H1 CY25-26 GCCs Co
Slide 39: Value Creation via ESG
07 Value Creation via ESG mindspacereit.com 39
Slide 40: Beyond Business Operations, Towards Long-term Value
Beyond Business Operations, Towards Long-term Value Commitment to Ecological balance, health & safety Mindspace REIT is First Real Estate entity Committed to 100% certified as Great to join the initiative Renewable Power Place to work • Received WELL Health & • Development Development – 5/5 – 94/100
Slide 41: Our Commitment to Build an ESG Centric Ecosystem
Our Commitment to Build an ESG Centric Ecosystem India’s first real estate entity to Signatory of EV100 Initiative Value creation for tenants join RE100 initiative through engagement activities Durgam Cheruvu Lake Added additional floor in Great place to work Makeover, Hyderabad Govt Hospital for CO
Slide 42: Beyond Business Operations, Towards Long-term Value
Beyond Business Operations, Towards Long-term Value Almost 1/3rd of Senior Management consists of Concluded 1st REIT Level Green Bond Issuance women in the Country 19.1% of debt outstanding is Green 10.0% 9.1% Green bond Green loan 80.9% Others Establishing a school with a capacity of 400 students i
Slide 43: Thank You
Thank You Investor Relations Enquiries: Kedar Kulkarni (Finance & Investor Relations) Email id: ir@mindspacereit.com mindspacereit.com 43
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