Mindspace Business Parks REIT IPO Review

About Company - Mindspace REIT

Mindspace Business Parks REIT IPO here presents all the relevant information about the business overview, its strengths, weaknesses, financials, IPO objective, important IPO dates, and others.The Mindspace Business Parks REIT IPO opens on 27th July 2020 and closes on 29th July 2020 (Tentative).

• Company Incorporated Year: 2019
• Sector: Real estate sector
• Fresh Issue: Rs. 10,000 million
• Issue Size:Rs. 4,500 Cr
• Employee Reservation Portion: Nil
• Employee Discount: Nil
• Website:https://www.mindspacereit.com/home/

About Mindspace Business Parks REIT

Mindspace Business Parks REIT is a real estate investment trust backed by K Raheja Corp (KRC) and a private equity firm – Blackstone. It is one of India’s largest Grade-A office portfolios company that has many quality portfolios across major office markets. Mindspace REIT’s product portfolio is expanded across 4 key regions including Pune, Hyderabad, Mumbai region, and Chennai that accounts overall 62.3% of the total Grade-A offices.

The company is primarily engaged in pro-active property management, building construction, assets improvement, and tenant engagement. It generates contractual revenues from leasing or renting its properties to tenants. Mindspace REIT has a large tenant base covering leading MNCs and Fortune 500 companies. Some of its major clients are Accenture, Qualcomm, JP Morgan, Amazon, Schlumberger, UBS, Capgemini, Facebook, Barclays, and others. It further has 5 well-integrated office parks embedded with advanced infrastructure and all the amenities i.e. restaurants, outdoor sports, etc. and also have 5 independent quality offices.

The aim of the business is to offer a community-based ecosystem to satisfy the demand of new-age businesses therefore, it is one of the topmost choices of domestic as well as multinational corporations. It has also taken many sustainability initiatives such as clean energy, recycling, and others to provide a sustainable environment to tenants. Well-diversified and well-positioned portfolio enable the firm to achieve further growth through lease-up vacant space, re-leasing of market rents, contractual rent escalation, and others.

Mindspace Madhapur and Mindspace Airoli East are the largest projects in its portfolio markets. Mindspace REIT has been recognized with many awards and accolades such as Best Environment-Friendly Office Space, Best Commercial Project of the Year, and 5-star rating by British Safety Council along with the Best Sustainable Project award for Midspace Airoli project in Navi Mumbai.

Mindspace Business Parks REIT for Retail Investors (Special Note)

REIT is a new investment category in Equity Market, as this kind of investment is available in Mutual Funds and National Pension System (NPS) . Retail investors can get exposure for REIT in past but not directly.

Still SEBI don't want to give retails investor to take a risk in REIT space directly so when REIT goes public, there is no retail or RII category. Retail investors can invest via NII category with minimum of 1 lot worth of Rs 55,000.

Mindspace REIT IPO Strengths

• Mindspace REIT is a gateway to one of India’s largest A-Grade office portfolios.
• Well-diversified portfolio across major commercial markets i.e. retail, residential, corporate, hospitality, etc. in Mumbai, Hyderabad, Pune, and Chennai.
• Sponsored by India’s leading Real Estate Player, Anbee Constructions LLP (ACL), and Cape Trading LLP (CTL) that are the part of K Raheja Corpo (KRC) Group.
• Five integrated business parks and five quality independent office assets.
• Credible tenant base with a low concentration rate.
• Significant business growth opportunities in the future.