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Mindspace REIT to Acquire 2.6 Mn Sq Ft Office Space in Chennai for ₹2,541 Crore

  • by- Grihik
  • Apr 1, 2026
Mindspace Business Parks REIT has announced the acquisition of 2.6 million sq ft of Grade A office space in Chennai for approximately ₹2,541 crore. The deal marks the REIT's second acquisition in Chennai since its listing.
Mindspace REIT to Acquire 2.6 Mn Sq Ft Office Space in Chennai for ₹2,541 Crore

Chennai, April 1: Mindspace Business Parks REIT has announced the acquisition of 2.6 million sq ft of Grade A office space in Chennai for about ₹2,541 crore. The REIT will acquire 100 per cent equity stakes in Sycamore Properties and Content Properties, which own the asset.

Asset Details

The office space, named Commerzone Pallikaranai, is located along the Pallavaram–Thoraipakkam Road (PTR) and spans 12.4 acres.

  • Completed space: Approximately 1.4 million sq ft across two blocks

  • Under construction: Additional 1.2 million sq ft, expected to be delivered by March 2027

Anchor Tenant

The campus is anchored by Shell, a Fortune Global 500 major, which occupies about 55 per cent of the leased area—one of the largest transactions in Chennai in recent years.

Acquisition Structure

The acquisition will be partly funded through a preferential issue of units worth up to ₹675 crore, subject to unitholder and regulatory approvals.

Portfolio Impact

Following the acquisition:

  • Total leasable portfolio: Increases from 39 million sq ft to 41.6 million sq ft

  • Gross Asset Value (GAV): Rises from ₹44,130 crore to ₹46,760 crore

  • Chennai's portfolio share: Expands from 3% to 9% by area

Strategic Significance

Ramesh Nair, MD and CEO of Mindspace REIT, said: "The acquisition of Commerzone Pallikaranai is a strategic addition to our portfolio and meaningfully strengthens our presence in Chennai, one of India's most resilient and high-growth office markets, with the lowest vacancy. This high-quality campus offers institutional-grade infrastructure, a strong multinational tenant base and long lease tenures, along with embedded NOI growth potential from its under-construction area."

Market Context

The asset is located on PTR (Pallavaram–Thoraipakkam Road) , already established as one of Chennai's major office corridors where demand continues to outpace supply. The under-construction block provides a clear runway for future growth and rental upside in a supply-constrained market.