Mindspace Business Parks REIT (Real Estate Investment Trust), jointly owned by K Raheja group and Blackstone, filed its final offer document with market regulator Securities and Exchange Board of India (SEBI) on July 17 to launch its initial public issue (IPO) to raise up to Rs 4,500 crore. The issue is likely to be launched soon, according to reports.
Mindspace aims to raise up to Rs 1,000 crore through the issuance of fresh units and up to Rs 3,500 crore by way of offer for sale (OFS), according to the documents filed with SEBI. The company will raise Rs 1,125 crore from strategic investors, the document added.
Mindspace Business Parks REIT will only be the second of its kind in India, after the success of Embassy Office Parks REIT. Embassy Office Parks REIT was listed on April 1, 2019. It had raised nearly Rs 5,000 crore and has provided returns of 8 per cent till date.
Real Estate Investment Trusts are popular real estate investment instruments worldwide, but were introduced in India only a few years ago. REITs unlock the value of real estate assets. Unlike their equity peers, REITs provide assured returns to investors through compulsory dividend distribution. It is mandatory upon REITs to distribute 90 per cent of their net distributable income as dividend to the investors.
Mindspace has leasable area of 29.5 million square feet in prime locations at Mumbai, Pune, Hyderabad and Chennai.
Meanwhile, the Rs 496-crore initial public offer (IPO) of specialty chemicals manufacturing company Rossari Biotech was subscribed by a whopping 79.37 times on the last day of bidding, on July 15.