Mindspace REIT IPO to raise Rs. 4,700 crores
Mumbai: Blackstone-backed Mindspace Business Parks REIT to float an initial public offering at the end of July 2020. Certainly, the real-estate firm would raise an amount of Rs. 4,700 crores.
On the other hand, Blackstone and K Raheja Corp would introduce offload units worth Rs. 3,700 crores. Also, the REIT brings up fresh units of about Rs. 1,000 crores in the issue.
Significantly, Mindspace stands as the second Real-Estate Investment Trust to list on Indian Bourses.
Besides, the firm has about 29.50 million square feet leasable area spread across Mumbai, Pune, Hyderabad, and Chennai.
Furthermore, the company declared 21% hike in its revenue at Rs. 2,026 crores in FY20. Hence, the profit for the year ended March 2020, stood at Rs. 514 crores. Also, the total market value of its portfolio remained Rs. 23,675 crores. Moreover, the committed occupancy of its portfolio stood at 92.40%.
On the other side, the Embassy Office Parks REIT, the only listed REIT in India, has returned 8% in its listing in April 2019. However, on Thursday, the Embassy REIT closed at Rs. 340 per unit on the Bombay Stock Exchange.
Given that retail investors can apply to REIT units with a minimum trading lot size of 50,000. Unlike equity investments, REITs offer assured returns to investors through a compulsory dividend distribution. Notably, REITs ought to distribute 90% of the net distributable income as a dividend. Hence, there exists a potential upside available to the investors based on the periodic valuation of the property.