Advertisement
Mindspace Business Parks Real Estate Investment Trust (REIT) is targeting a substantial increase in its net operating income over the next three to four years, driven by an organic growth strategy and a major expansion plan. The trust intends to invest over INR 4,200 crore to add 8 million sq ft to its portfolio. With a current NOI of INR 2,000 crore and a strong presence in tech hubs, the company anticipates minimal impact from trade shifts or AI adoption, emphasising India's cost advantage and regulatory adjustments to attract more investments into REITs.
Mindspace Business Parks REIT is aiming for a 50 per cent rise in its net operating income over the next three to four years, according to a senior company official. This growth is expected to be driven organically through a planned expansion programme, which involves deploying over INR 4,200 crore to add another 8 million sq ft to its existing portfolio. Advertisement
The trust's Chief Financial Officer, Preeti Chheda, indicated that the net operating income is expected to grow by INR 900-1,000 crore during this period. At present, the REIT's NOI stands at INR 2,000 crore, reflecting its core operational performance.
Chheda noted that the company, marking five years since its listing, currently manages 30 million sq ft, with an additional 3.5-4 million sq ft under construction. Permissions are also awaited for another 4 million sq ft of planned development. Construction for these new projects is expected to commence within the next 12 to 18 months.
Focusing on technology companies and global capability centres, Managing Director and Chief Executive Ramesh Nair explained that the business does not foresee significant disruption due to ongoing changes in trade policies or the accelerated adoption of artificial intelligence. He cited internal analysis and independent reports suggesting that even a hypothetical 50 per cent US tariff on Indian services exports would still make it cost-effective for clients to operate from India, while AI would not adversely affect job creation.
Nair highlighted India's cost advantages, noting that entry-level salaries for tech professionals largely remain in the INR 3.5-4 lakh range. He added that the trend of tech companies building their own offices does not pose a threat, as it takes up to five years to construct a space, whereas leasing from a REIT allows rapid deployment to meet client needs. Additionally, constructing campuses exposes foreign companies and executives to the uncertainties of the Indian real estate market.
The share of Indian corporates in the REIT's NOI has doubled to 25 per cent over the last five years. Chheda mentioned that domestic companies predominantly seek spaces in Mumbai suburbs like Airoli, while other markets, including Pune, Hyderabad, and Chennai, attract strong interest from multinational tech firms. She also stressed the importance of regulatory reforms to draw more investment into REITs, such as raising investment caps for insurance and pension funds and converting company structures into trust structures.
By leveraging India's cost efficiencies, addressing multinational client needs, and planning regulatory improvements, the Trust aims to strengthen its market presence while mitigating potential risks from global trade shifts and technological advancements. Its focus on rapid leasing, alongside organic portfolio growth, underscores a forward-looking approach to the evolving commercial real estate landscape in India.
Source - PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
