The governing board of K Raheja Corp Investment Managers LLP, manager to Mindspace REIT approved a distribution of Rs 272.8 crore for the first quarter of FY22. Dividend, which is tax-exempt in the hand of unitholders, forms 92 per cent of this distribution while interest forms 8 per cent.
The record date for the distribution is August 19, payment of the distribution will be processed on or before August 28.
“At Mindspace REIT we continue to demonstrate strong operating and financial performance, amidst a challenging external environment. Our gross leasing for the quarter remained healthy at 1.2 million sq fr as existing tenants continued to expand footprint, while we also added new tenants. Robust hiring outlook and a healthy deal pipeline of technology firms supported by sustained demand and investments in the sector augurs well for the business,” said Vinod Rohira, Chief Executive Officer, Mindspace Business Parks REIT.
He is confident of revival in demand on the back of rapid vaccinations, gradual relaxation of restrictions across our micro-markets and a strong desire to return to office amongst the REIT’s tenants.
During the quarter, the REIT’s gross leasing remained robust at 1.2 million sq ft, with an average monthly rent of Rs 60 per sq ft.
The REIT’s under-construction right of first offer (ROFO) asset, Commerzone Madhapur in Hyderabad has achieved pre-leasing of 1.8 million sq ft.
It has proposed redevelopment of its project Mindspace Madhapur that will increase the leasable area to an estimated 1.31 million sq ft from the current 0.36 million sq ft. The portfolio size is expected to potentially increase from 30.2 million sq ft to 31.2 million sq ft following the proposed redevelopment.
The REIT has managed to reduce the average cost of debt to 7 per cent with low net debt to the market value of 14.9 per cent.
