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Real Estate Investment Trust (REIT) in India, Mindspace Business Parks REIT, owned by K Raheja group and Blackstone, has filed its final offer document to launch a Rs 4,500 crore IPO. The company, which aims to raise up to Rs 1,000 crore through issuance of fresh units and up to Rs 3,500 crore through an offer for sale (OFS), filed papers with markets regulator Sebi yesterday. It will be raising Rs 1,125 crore from strategic investors, according to the document. It will be raising Rs 1,125 crore from certain strategic investors, including affiliates of Capital Group, GIC group, Fidelity Group and Fullerton Group, who have already made commitments to participate in the issue.
Last year, Embassy Office Park REIT, the country’s first REIT issue, raised nearly Rs 5,000 crore. The company filed the initial offer document in December last year.
REIT, a popular instrument globally, was introduced in India a few years ago aimed at attracting investment in the real estate sector by monetising rent-yielding assets. It helps unlock the massive value of real estate assets and enable retail participation in the development of the nation. Mindspace Business Parks REIT has brought 295 lakh sq ft of office properties located in Mumbai, Pune, Chennai and Hyderabad, out of which around 245 lakh sq ft area has been completed. The annual rental income is currently around Rs 1,300 crore, which is estimated to reach Rs 2,000 crore in the next few years, sources said.
