Mindspace Business Park REIT.
Strategic Move Advised by SAM & Arthur Cox Marks REIT’s First Third-Party Expansion: Hyderabad, India – In a significant expansion of its real estate portfolio, Mindspace Business Parks REIT has successfully acquired Q-City, a prominent IT Park in Hyderabad, for a reported price of ₹512 crore ($61.4 million USD). The transaction, which marks Mindspace’s first third-party acquisition outside of its existing portfolio parks, was a complex deal requiring extensive legal and advisory support from both Indian and international firms.
Acquisition Details
The acquisition was executed through the purchase of 100% of the shares of Mack Soft Tech Private Limited, the Indian subsidiary of the Ireland-based Quinn Group. This strategic move adds a key asset in Hyderabad’s booming Financial District to Mindspace‘s portfolio, which already spans major Indian cities including Mumbai, Pune, and Chennai. The newly acquired property, covering 810,000 square feet, will be rebranded as ‘The Square, 110 Financial District’.
Legal Expertise Steers the Deal
According to a report, leading the charge on the Indian legal front was the prominent law firm Shardul Amarchand Mangaldas & Co. The firm’s advisory team was instrumental in navigating the intricate legal landscape of the acquisition. Partners Nikhil Naredi and Abhishek Parekh led the transaction, with a dedicated team handling various facets of the deal.
Corporate Due Diligence: The corporate due diligence was a meticulous process, led by Partners Parekh and Natalee Nanda, with support from a team of associates who examined every detail of Mack Soft Tech Private Limited.
Real Estate and Capital Markets Advisory: The real estate aspects of the deal were handled by Partner Bhoumick Vaidya and Senior Associate Asmita Hegde, who provided crucial advice on the property itself. Rohit Tiwari, a partner, and Saloni Tyagi, a principal associate, managed the capital markets side of the transaction, ensuring all financial regulations were met.
Competition Law Compliance: Rohan Arora, a partner, and Varalika Mendiratta, an associate, advised on the competition law implications, a vital component of any major acquisition.
Mindspace Business Park.
Irish Law Expertise
Given the international nature of the seller, the deal also required legal expertise on Irish law. For this, Mindspace enlisted the services of Arthur Cox LLP, a leading law firm in Ireland, to act as its legal advisors.
Strategic Significance for Mindspace
Mindspace Business Parks CEO Ramesh Nair called the acquisition a “decisive milestone” in the company’s growth journey. The deal, which was secured at an 11.6% discount to an independent valuation, aligns with the company’s strategy of disciplined and value-accretive expansion. With this acquisition, Mindspace’s total portfolio has grown to 37.9 million square feet, solidifying its presence in Hyderabad, a city that has become a hotspot for Global Capability Centers (GCCs) and a top tech-talent hub in India.
Financial Implications and Future Outlook
The acquisition was funded through debt and is expected to boost the REIT’s Net Operating Income (NOI) by a significant amount on a stabilized basis. The deal showcases Mindspace’s proactive strategy to grow its portfolio beyond its own development pipeline, positioning the company for sustained growth in India’s dynamic commercial real estate market.