| "Mindspace Business Parks REIT" Issue Details | Mindspace Business Parks REIT | Issue Period | Bid/Offer Opens On: Monday, 27th July, 2020* Bid/Offer Closes On: Wednesday, 29th July, 2020 *The Anchor Investor Bidding Date shall be 24th July, 2020 | Issue Details | Fresh issuance of Units aggregating upto ₹ 1,000 Cr + Offer for sale of upto ₹ 3,500 Cr | Issue Size (₹. Cr) | Up to ₹ 4,500 Cr | Strategic Investors | 4.09 Cr Units (₹ 1,125 Cr) | Price Band | ₹ 274 - 275 | Bid Lot | 200 Units and in multiple of 200 units thereafter | Net offer ( excluding Strategic Investors portion) | ~12.27 Cr Units (₹ 3,375 Cr) | Institutional Investors | 75% of the Net offer ( ~9.20 Cr Units) (₹ 2,531 Cr) | Non Institutional Investors | 25% of the Net offer ( ~3.07 Cr Units) (₹ 844 Cr) | | Based on Upper Price Band | BRLMs | Axis Capital, Morgan Stanley, DSP Merrill Lynch, Citigroup Global, JM Financial, Kotak Mahindra Capital, CLSA India, Nomura Financial, UBS Securities, Ambit Capital, HDFC Bank, IDFC Securities, ICICI Securities | Registrar | KFin Technologies Pvt. Ltd. | | Application made using third party ASBA Bank A/c are liable to be rejected. |
Executive Summary q Mindspace Business Parks REIT ("Mindspace REIT") owns a quality office portfolio located in 4 key office markets of India. The Portfolio has Total Leasable Area of 29.5 msf and is one of the largest Grade-A office portfolios in India (Source: C&W Report). Their Portfolio comprises 23.0 msf of Completed Area, 2.8 msf of Under Construction Area and 3.6 msf of Future Development Area, as of March 31, 2020. Their Portfolio has 5 integrated business parks with superior infrastructure and amenities and 5 quality independent offices. Their assets provide a community-based ecosystem and they have been developed to meet the evolving standards of tenants and the demands of "new age businesses", which makes them among the preferred options for both multinational and domestic corporations. q Their Portfolio is located in 4 key office markets of India, namely, Mumbai Region, Hyderabad, Pune and Chennai ("Portfolio Markets"), which accounted for approximately 58% of total Grade-A net absorption in the top 6 markets in India. q As of March 31, 2020, their Portfolio is well diversified with 172 tenants and no single tenant contributed more than 7.7% of the Gross Contracted Rentals. Furthermore, as of March 31, 2020, approximately 84.9% of the Gross Contracted Rentals were derived from leading multinational corporations and approximately 39.4% from Fortune 500 companies. Their tenant base comprises a mix of multinational and Indian corporates, including affiliates of Accenture, Qualcomm, BA Continuum, JP Morgan, Amazon, Schlumberger, UBS, Capgemini, Facebook, Barclays and BNY Mellon, as on March 31, 2020. q Their Portfolio is stabilized with 92% Committed Occupancy and a WALE of 5.8 years, as of March 31, 2020. Its Committed Occupancy is 240 bps higher than average occupancy in their Portfolio Markets, as of March 31, 2020, while rental growth has been 320 bps higher for the last 3 fiscal years (Source: C&W Report). q Between April 1, 2017 and March 31, 2020, through its operating expertise, Mindspace REIT has: • Leased 7.6 msf of office space; achieved average re-leasing spreads of 28.9% on 3.0 msf of re-leased space and leased 4.6 msf new area (including Pre-Leased Area and Committed Area, as of March 31, 2020) to 60 tenants; achieved re-leasing spread of 23.1% for 1.1 msf of area re-leased during fiscal year 2020; • Grown their Portfolio by 4.9 msf through strategic on-campus development of their business parks; • Maintained consistently high Occupancy and achieved Committed Occupancy of 92% (240 bps higher than average occupancy in their Portfolio Markets (Source: C&W Report)), as of March 31, 2020; • Grown In-place Rent of their Portfolio at a CAGR of 6.7% (320 bps higher than average rent growth in their Portfolio Markets (Source: C&W Report)); and • Undertaken strategic renovations at certain assets, to improve tenant experience. They have cumulatively invested ₹ 73.70 crore to renovate their Portfolio, as of March 31, 2020. q The Total Market Value of the Portfolio, which comprises Market Value of the Portfolio and the facility management division, as of March 31, 2020, as per the Valuer is ₹ 23,675.1 crore. q Mindspace REIT has been assigned a corporate credit rating of 'Provisional CCR AAA/Stable' by CRISIL Limited. q The Units will be listed on BSE and NSE. | |
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