ADIA plans to exit Mindspace REIT via block deal

Abu Dhabi Investment Authority, which holds 9.17 per cent stake in Mindspace Business parks REIT, is looking to exit the REIT through a block deal for a little over ₹1,900 crore, sources said.

The floor price of the block is likely at ₹350 a unit, a discount to its closing price of ₹363.92 a unit on the BSE.

In 2022, ADIA, through one of its funds, Platinum Illumination A 2018 Trust, had acquired the stake from Blackstone for ₹1,740 crore. The sovereign fund will be making an absolute return of a little over 9 per cent in two years.

When Blackstone had sold its stake, it was at ₹320 a unit.

Blackstone was one of the sponsors of the REIT along with developer K Raheja Corp.

Total stake

The total stake of the sponsor and sponsor group at the end of September 2024 was 63.5 per cent, exchange filings showed. The public holding in the group, including institutions and non-institutions was 36.5 per cent.

The units of Mindspace REIT hit a 52-week high of ₹384.99 on November 12, up from the low of ₹315.50 in December 2023.

The REIT ended the half year with 34.7 million square feet of leasable area and 91.7 per cent committed occupancy and in-place rent of ₹70.4 per square feet month. The portfolio comprises 26.4 msf completed area, 4.4 msf under construction area and 3.9 msf future development area.

Its office portfolio consists of 55 buildings that have a market value of ₹31,300 crore. It has a net asset value of ₹392.60 per unit