The Rs 4,500 crore Blackstone-backed Mindspace Business Parks REIT IPO kicks off on Monday. The price band of the issue is fixed at Rs 274-275 per share. Investors can bid for a minimum of 200 shares and in multiples of 200 shares. At the upper price band, investors would have to invest a minimum amount of Rs 55,000.
Mindspace Business Parks REIT (Real Estate Investment Trust) is jointly owned by K Raheja group and Blackstone
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 REIT has already raised Rs 2,644 crore from anchor and strategic investors, with HSBC Global, Fidelity and Nomura Trust, Capital Income Builder and Cohen & Steers as among major investors.
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.