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Mindspace Business Parks REIT has added an 8 lakh sq ft commercial asset, 'Q-City', in Hyderabad's Financial District to its portfolio for INR 512 crore. The acquisition, finalized through a 100% stake in Mack Soft Tech Pvt Ltd, marks the company's first large external buy. With this move, Mindspace's total portfolio grows to 37.9 million sq ft, reinforcing its footprint in India's fastest-growing Global Capability Center hub. The asset was acquired at an 11.6% discount and reflects a 9.9% capitalization rate, signaling strategic capital deployment.
Mindspace Business Parks REIT has taken a decisive step to expand its commercial real estate footprint with the acquisition of an 8 lakh sq ft office campus in Hyderabad for INR 512 crore. The premium asset, known as 'Q-City', is located in the bustling Financial District of Hyderabad, widely regarded as India's hottest destination for Global Capability Centers (GCCs). Advertisement
The acquisition was executed by purchasing 100% equity in Mack Soft Tech Pvt Ltd, the owning entity of Q-City. This is Mindspace's first major external acquisition since its listing in 2020, signaling a new growth phase driven by strategic opportunities beyond its own development pipeline.
Ramesh Nair, CEO and MD of Mindspace REIT, stated that the addition of Q-City further strengthens their hold in Hyderabad, a market that has grown rapidly due to its booming tech, BFSI, and GCC ecosystem. He noted that Hyderabad is now home to over 350 GCCs, contributing to its position as one of India's top tech-talent clusters.
The deal, which was closed at an 11.6% discount to an independently conducted valuation, is seen as a value-accretive move. The 9.9% cap rate underscores the company's disciplined investment strategy and focus on generating long-term returns for its unitholders.
This acquisition expands Mindspace's overall portfolio to 37.9 million sq ft. Out of this, 30.8 million sq ft is completed and operational, 3.7 million sq ft is under active construction, and 3.4 million sq ft is reserved for future development. The REIT's portfolio now spans key Indian cities including the Mumbai Region, Pune, Hyderabad, and Chennai, with five integrated business parks and seven standalone office properties.
Mindspace REIT has previously been recognized for its high-quality Grade-A office spaces, and its strong presence in economic hubs makes it a preferred option for global and domestic corporations alike. This acquisition aligns with the REIT's long-term strategy of enhancing value through selective and strategic capital deployment.
Source PTI
5th Jun, 2025
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