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

Deal rationale and strategic fit

• Acquisition of three prime, completed CBD office assets in Mumbai (Worli, BKC Annexe) and Pune aligns with the strategy to expand in high-demand, premium markets and enhances the front office portfolio.

• Assets are in irreplaceable, well-connected locations with strong global and Indian tenants, premium amenities, and high demand from marquee occupiers.

• Strengthens presence in Mumbai's prime business districts and Pune, capitalizing on market momentum, limited supply, and rental growth.

• Builds on a disciplined, value-accretive growth strategy focused on high-quality, income-generating assets.

Financial terms and conditions

• Total acquisition value is INR 29.2 billion, reflecting a 6.1% discount to independent valuations.

• Preferential issue of units aggregating up to INR 18.2 billion to fund the acquisition, subject to unitholder and regulatory approvals.

• Share purchase consideration: Pramaan Properties (Ascent-Worli and Pune Office) INR 14,341 million; The Square Avenue 98 INR 3,863 million.

• Post-acquisition, LTV remains conservative at 24.7%, with headroom to grow up to 30-35% if needed.

• Gross Asset Value of acquired assets is ~INR 31.1 billion; post-acquisition, total GAV increases from INR 410.2 billion to INR 441.3 billion.

Synergies and expected cost savings

• Acquisition is accretive, increasing NOI by up to 9% and DPU by up to 1.7% on a pro forma basis for FY 2026.

• Embedded mark-to-market and value-add opportunities, especially in BKC Annexe and Worli assets.

• Front-office portfolio value contribution increases to ~7.9%, enhancing income stability.