Mindspace Business Parks Reit · NSE:MINDSPACE.RR
Mindspace Business Parks Reit — Investor Presentation (June 2022)
46 slides from Mindspace Business Parks Reit's investor presentation, Jun 2, 2022
Slide 1: Analyst Meet
Analyst Meet 2 – 3 June 2022 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: Portfolio Overview
Portfolio Overview mindspacereit.com 3
Slide 4: Portfolio Overview
Portfolio Overview Mindspace REIT is one of the largest Grade-A office portfolios in India 31.8 msf INR 61.7 psf Total Leasable Area (1) In-place Rent 84.2% 84.3% Same Store Committed Committed Occupancy Occupancy on 23.6 msf on 24.2 msf ` Mumbai Region Hyderabad 16.3% 6.9 years 12.9 msf (40.5 %) 12
Slide 5: Proven Track Record of Value Creation
Proven Track Record of Value Creation Foresight to go to new areas and develop business districts which have grown to become major commercial hubs Mindspace Malad, Mumbai Region Mindspace Airoli East, Mumbai Region Year 2000 Year 2007 Today Today One of the first to set-up commercial real estate in
Slide 6: Pioneers in Creating Integrated Business Districts
Pioneers in Creating Integrated Business Districts Land which was once enveloped with boulders and rocks was successfully converted into one of the largest and most preferred business district of Hyderabad Mindspace Madhapur, Hyderabad Gera Commerzone Kharadi, Pune Year 2004 Year 2016 Today Today To
Slide 7: Five Integrated Business Parks
Five Integrated Business Parks Mindspace Madhapur Mindspace Airoli East Hyderabad | 11.7 msf Mumbai Region | 6.8 msf Completed Area: 9.9 msf; Committed Occupancy: 89.6% Completed Area: 4.7 msf; Committed Occupancy: 86.3% Mindspace Airoli West Gera Commerzone Kharadi Commerzone Yerwada Mumbai Region
Slide 8: Quality Independent Office Assets
Quality Independent Office Assets Commerzone Porur Paradigm, Mindspace Malad Chennai | 0.8 msf (1) Mumbai Region | 0.7 msf Completed Area: 0.8 msf; Committed Occupancy: 36.5% Completed Area: 0.7 msf; Committed Occupancy: 93.6% The Square, Nagar Road The Square, BKC Pune | 0.8 msf Mumbai Region | 0.1
Slide 9: Robust Development Pipeline in Each of Our Micro-market
Robust Development Pipeline in Each of Our Micro-market ~1.7 msf addition to the portfolio in FY23 underway; ~70% space Pre-committed Under Construction Status: Historical development and expansion potential of our Portfolio Airoli (W) B9, Mumbai Region (1.1 msf) Commerzone Kharadi B5, Pune (0.7 msf
Slide 10: Growth Trajectory Since Listing
Growth Trajectory Since Listing Demonstrated strong Gross Leasing as macroenvironment continues to improve 8.1 msf 3.7 msf 0.7 msf 1.5 4.4 msf Successfully pre-leased msf Gross Leasing Re-leased New & Vacant entire U/C building (B5) Delivered New (Incl. hard option and area Leased at Commerzone Deve
Slide 11: Strong Financial Performance Since Listing
Strong Financial Performance Since Listing Delivered 36.5% cumulative returns for Unitholders INR 28.0 p.u. 6.6 % p.a. 15.7 % INR 20.5 Bn Weighted Average Total distribution till Loan to Market Raised NCD/MLD at REIT Corporate credit rating by Cost of Debt as on date Value(1) & SPV level since listi
Slide 12: Beyond Business Operations, Towards Long-term Value
Beyond Business Operations, Towards Long-term Value Commitment to Ecological balance, health & safety First Real Estate entity Committed to 100% to join the initiative Renewable Power Mindspace REIT Mindspace REIT is received ‘National certified as Great (1) Builder Award’ Place to work 36 18.7 msf
Slide 13: Asset Overview Mumbai Region
Asset Overview Mumbai Region mindspacereit.com 13
Slide 14: Mumbai Region – Infrastructure Upgrade to Drive Demand Uptick
Mumbai Region – Infrastructure Upgrade to Drive Demand Uptick Mindspace REIT’s Parks - “New age district” for the rapidly growing IT/ITeS services, housing the leading IT and fintech companies Map not to scale Presence in the region - 12.9 msf Completed area – 9.5 msf TOWARDS GUJARAT With population
Slide 15: Thane Belapur Belt – Poised to Become the Technology Hub of Mumbai Region
Thane Belapur Belt – Poised to Become the Technology Hub of Mumbai Region Current key tenants & retail assets in Thane Belapur Belt Sr No. Key Tenants/Retails 1 Inorbit Mall, Vashi 2 Seawoods Grand Central Mall 3 IKEA Mindspace 4 Hexaware Technologies, Axis Bank, ICICI Bank Airoli West 5 Morningstar
Slide 16: Mindspace Airoli East, Mumbai Region – Asset Overview
Mindspace Airoli East, Mumbai Region – Asset Overview Project Details Focus On Sustainability and Safety Project land area c.50.1 acres Total Leasable Area (1) c.6.8 msf 11 4.4 Green msf Buildings Committed Occupancy 86.3% In-place Rent INR 53.7 psf Received awards / certification: ‘Sword of Honour’
Slide 17: Mindspace Airoli East, Mumbai Region – Project Layout
Mindspace Airoli East, Mumbai Region – Project Layout Airoli in 2005 Future Development Residential Mindspace Airoli East today Catchment A Business Destination Highstreet Thane - Belapur Thane - Belapur Road Road Exit Gate Mindspace Airoli (East) Entry Gate Direct entry to the Airoli Railway is the
Slide 18: Re-energising the Park with Building and Infra Upgrades
Re-energising the Park with Building and Infra Upgrades Before Current Façade of old building Revamped the building’s exterior façade Old entrance gate Renovated entrance gate mindspacereit.com 18
Slide 19: Utilising Covid-19 downtime efficiently to create a WOW factor
Utilising Covid-19 downtime efficiently to create a “WOW” factor Matching world-class standards, while enhancing the biodiversity within the park Outside seating Refurbished hardscape & landscape Attractive aesthetics Recreational spaces mindspacereit.com 19
Slide 20: Addition of Highstreet to Augment the Park's Eco system
Addition of Highstreet to Augment the Park’s Eco system Highstreet adjoining the Thane-Belapur Road External podium retail and F&B structure Proposed Retail Outlets mindspacereit.com 20
Slide 21: Mindspace Airoli West, Mumbai Region – Asset Overview
Mindspace Airoli West, Mumbai Region – Asset Overview Project Details Focus On Sustainability and Safety Project land area c.50.0 acres Total Leasable Area (1) c.5.2 msf 6 3.5 Green msf Buildings Committed Occupancy 66.0% In-place Rent INR 57.7 psf Received awards / certification: ‘Sword of Honour’
Slide 22: Mindspace Airoli West, Mumbai Region – Project Layout
Mindspace Airoli West, Mumbai Region – Project Layout Key Updates Proposal to revamp SEZ act announced in Budget expected to revive demand B10 De-notified Building 9 has seen strong occupier interest B8 Demand trends highlight inherent attractiveness of the micro market Data Center Development Appli
Slide 23: Asset Overview Pune
Asset Overview Pune mindspacereit.com 23
Slide 24: Pune – Thriving Office Market with Excellent Social Infrastructure
Pune – Thriving Office Market with Excellent Social Infrastructure Favorable demographics and social infrastructure led office market growth Commerzone Yerwada Presence in the region – 5.4 msf Completed area – 3.6 msf The Square SBD East largest micro market in Pune Nagar Road with ~33 msf of Grade
Slide 25: Commerzone Yerwada, Pune – Asset Overview
Commerzone Yerwada, Pune – Asset Overview Project Details Focus On Sustainability and Safety Project land area c.25.7 acres Total Leasable Area (1) c.1.7 msf 5 1.6 Green msf Buildings Committed Occupancy 97.4% In-place Rent INR 64.0 psf Received awards / certification: ‘Sword of Honour’ Mark to Mark
Slide 26: Commerzone Yerwada, Pune - Project Layout
Commerzone Yerwada, Pune - Project Layout Aesthetically designed buildings integrated with open spaces and Landscape gardens mindspacereit.com 26
Slide 27: Gera Commerzone Kharadi, Pune – Asset Overview
Gera Commerzone Kharadi, Pune – Asset Overview Project Details Focus On Sustainability and Safety Project land area c.25.8 acres Total Leasable Area (1) c.2.9 msf 4 2.9 Green Buildings(3) Msf (3) Committed Occupancy 97.8% In-place Rent INR 72.2 psf Received awards / certification: ‘Sword of Honour’
Slide 28: Gera Commerzone Kharadi, Pune - Project Layout
Gera Commerzone Kharadi, Pune - Project Layout B6 B5 B1 B4 B2 B3 Under Construction Completed Mindspace REIT’s Share – Building 3, 4, 5 & 6 mindspacereit.com 28
Slide 29: Commerzone Kharadi, Pune – Recreating Workspaces using Biophilic Design
Commerzone Kharadi, Pune – Recreating Workspaces using Biophilic Design Reconnecting millennial professionals with nature Panoramic view of the park Biophilic Landscape Attractive Aesthetics Shallow Stream and Sand Beds mindspacereit.com 29
Slide 30: The Square Nagar Road, Pune – Asset Overview
The Square Nagar Road, Pune – Asset Overview Project Details Focus On Sustainability and Safety Project land area c.10.1 acres Total Leasable Area (1) c.0.8 msf 1 0.2 Green msf Building Committed Occupancy 100% In-place Rent INR 70.0 psf Received awards / certification: ‘Sword of Honour’ Mark to Mar
Slide 31: ESG Framework
ESG Framework mindspacereit.com 31
Slide 32: ESG Framework: Our Approach towards Building a Sustainable Ecosystem
ESG Framework: Our Approach towards Building a Sustainable Ecosystem Our Purpose Building a sustainable ecosystem Strategic Pillars and Key Focus Areas Resource Conservation and Employee and Community Responsible Business Conduct Efficiency Relations • Human Capital • Human Rights & Ethical • Carbon
Slide 33: Governance Structure
Governance Structure Cross-functional ESG committee responsible for identifying, finalizing and monitoring ESG roadmap Responsible for the implementation of ESG strategy, sustainability initiatives and roadmap to achieve the set targets • Executive Committee to oversee ESG implementation Provides sp
Slide 34: ESG: Our Journey So Far and Way Forward
ESG: Our Journey So Far and Way Forward Built one of the largest portfolios of LEED / IGBC Releasing First “Sustainability Report” certified buildings Participation in best-in-class benchmarking Generated carbon credits through emission such as GRESB & DJSI reductions; opportunity to monetize Journe
Slide 35: ESG at Mindspace REIT
ESG at Mindspace REIT mindspacereit.com 35
Slide 36: Sustainable Development and Operations across Our Portfolio
Sustainable Development and Operations across Our Portfolio Offering an efficient and eco-friendly working environment to our tenants Energy Efficiency Water Management Waste Management • Solar power capacity of 1.6 MW • Implemented technologies such as • Ensured reuse of 80-100% through PV modules
Slide 37: Strong commitment towards reducing Carbon Footprint across projects
Strong commitment towards reducing Carbon Footprint across projects India’s First Real-Estate Entity to Join Climate Group’s EV 100 and RE 100 Initiatives Committing to 100% renewable energy by 2050 Phased transformation to renewable energy (1) 100% 35% 50% 2025 2030 2050 • To build a sustainable ec
Slide 38: Green Portfolio
Green Portfolio Completed buildings(1) Under-construction buildings 0.4% 17.0% 22.3% 58.3% 77.3% 24.6% Certified (Gold/platinum) In process Others Pre-certified In process To be applied 77.3% (18.7 msf) of completed portfolio is rated LEED/IGBC Gold/Platinum(2) In the process of converting balance t
Slide 39: Working Towards the Betterment of Our Eco-System
Working Towards the Betterment of Our Eco-System Durgam Cheruvu Lake Makeover, Hyderabad ▪ Protect and enhance the biodiversity of the lake and its surroundings ▪ Assisting the government in restoring and beautifying the lake ▪ Extensive cleaning of stubborn water hyacinth transforming it into a hea
Slide 40: Changing Lives via Supporting the Cause of Education
Changing Lives via Supporting the Cause of Education Room to Read “At Room to Read, we feel honoured to partner with Mindspace to bring quality educational opportunities to children in the underserved communities in India. We thank you for your continued commitment towards our mission of aiding in c
Slide 41: Shaping the Future Minds of our Nation & Strengthening Healthcare Infrastructure
Shaping the Future Minds of our Nation & Strengthening Healthcare Infrastructure Community School at Strengthening Healthcare Infrastructure Assisting frontline warriors & Gambhiraopet, in partnership with in Hyderabad marginalized Covid patients the State government • Extending support to city secu
Slide 42: Focus On High Corporate Governance Standards
Focus On High Corporate Governance Standards Strong governance framework complemented by partnership with leading institutional investors Mindspace REIT: Top-Notch Standards Six Member Board / Independent • Two-Third independent directors on the Board Chairman • Manager can be removed with 60% appro
Slide 43: ESG Roadmap
ESG Roadmap mindspacereit.com 43
Slide 44: Key Focus Areas (1/2)
Key Focus Areas (1/2) Focus Area KPI Short-Term Target Target Year Long-Term Target Target Year Carbon Neutral Operations Scope 1 & Scope 2 21% reduction in emissions 2025 42% reduction in emissions 2030 emission reduction Share of Renewable 35% Renewable energy in 50% renewable energy in 2025 2030
Slide 45: Key Focus Areas (2/2)
Key Focus Areas (2/2) Focus Area KPI Short-Term Target Target Year Long-Term Target Target Year Community & Tenant Relationship Establish a mechanism to Tenants Net Tenant’s net promoter score calculate tenant’s net 2022 2025 Promoter Score at or above +40 promoter score Health & Safety Aim to ensur
Slide 46: Thank You
Thank You Investor Relations Enquiries: Kedar Kulkarni (Finance & Investor Relations) Email id: ir@mindspacereit.com mindspacereit.com 46
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