Mindspace Business Parks REIT (MINDSPACE) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of two institutional-grade office assets in Chennai's PTR corridor, including International Tech Park Chennai (ITPC RR), expands the portfolio to 6.3 million sq ft and positions the acquirer among the top two office asset owners in the city.

• Largest external acquisition since listing, aligning with the growth strategy and portfolio diversification, and tripling the Chennai portfolio share.

• Strategic location on Radial Road, adjacent to key IT corridors, enhances connectivity and access to talent.

• Both assets are located 10 minutes apart, enabling operational synergies and flexibility for large tenants.

• Chennai's office market is benefiting from infrastructure challenges in competing cities, driving demand and supporting future market growth.

Financial terms and conditions

• Total acquisition consideration is INR 5,500 crore for both assets, with ITPC acquired via a 51% stake (acquirer) and 49% (360 ONE), all-cash, funded through debt; aggregate gross consideration for ITPC RR is INR 30 billion, subject to adjustments.

• Commerzone Pallikaranai funded by issuing units worth up to INR 675 crore to the sponsor, subject to unitholder approval.

• Acquisitions completed at a 2-2.6% discount to independent valuation; implied NOI yields range from 7.3% to 9.1% on a stabilized basis.

• Portfolio LTV increases from 25.6% to 30.3% post-acquisition.

• The market value of ITPC RR as of March 15, 2026, is estimated at INR 30,613.58 million for 100% interest.

Synergies and expected cost savings

• Clustering of assets along PTR corridor enables tenant expansion/consolidation, higher tenant stickiness, and operational synergies.

• Enhanced ability to offer flexible solutions to global tenants, driving rental upside and pricing advantage.

• The asset is expected to add approximately INR 2,409 million to NOI on a stabilized basis, with 51% attributable to the acquirer.