Mindspace REIT Expands Chennai Footprint with ₹2,541 Crore Acquisition of Commerzone Pallikaranai

Mumbai, April 2, 2026: Mindspace Business Parks REIT has announced a major expansion of its southern India footprint with the acquisition of 100% equity shareholding in Sycamore Properties Private Limited and Content Properties Private Limited. The deal, valued at approximately Rs 2,541 crore, secures the 2.6 million sq. ft. Grade-A office asset ‘Commerzone Pallikaranai,’ located on the strategic Pallavaram–Thoraipakkam Road (PTR) in Chennai.

The transaction marks the REIT’s second acquisition in Chennai since its listing, bringing its total post-listing additions to roughly 6.6 million sq. ft. with a cumulative value of Rs 8,800 Cr. This move is part of a disciplined capital allocation strategy aimed at scaling the REIT’s portfolio across India’s key office markets, including Mumbai, Hyderabad, Pune, and Chennai. The Board of the Manager has also approved a preferential issuance of units up to Rs 675 crore at an issue price of Rs 484.89 per unit, subject to regulatory and unitholder approvals.

The acquisition was executed under a Right of First Offer (ROFO) agreement with the sponsors, K Raheja Corp. Commerzone Pallikaranai is a modern 12.4-acre campus featuring IGBC Platinum and WELL Platinum certifications. The asset currently includes 1.4 million sq. ft. of completed space, anchored by Fortune Global 500 major Shell, while an additional 1.2 million sq. ft. is under construction with a projected delivery date of March 2027. The purchase price reflects a 3.4% discount to the average of two independent valuations.

This acquisition is set to increase Mindspace REIT’s total leasable portfolio from 39 million sq. ft. to 41.6 million sq. ft., while its Gross Asset Value (GAV) will rise from Rs 44,130 crore to Rs 46,760 crore. The deal significantly elevates Chennai’s share within the portfolio, moving it from 3% to approximately 9% by area. The under-construction blocks are expected to provide a clear runway for future Net Operating Income (NOI) growth in a supply-constrained market.

Speaking on the acquisition, Ramesh Nair, MD and CEO, Mindspace REIT, said, “The acquisition of Commerzone Pallikaranai is a strategic addition to our portfolio and meaningfully strengthens our presence in Chennai, one of India’s most resilient and high-growth office markets, with the lowest vacancy. This high-quality campus offers institutional-grade infrastructure, a strong multinational tenant base and long lease tenures, along with embedded NOI growth potential from its under-construction area. With PTR already established as one of Chennai’s major office corridors, where demand continues to outpace supply, this acquisition positions us strongly to capture future leasing demand, rental upside and long-term value creation for our unitholders.”

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