
Commerzone Raidurg was completed in 2023 (Image: Mindspace REIT)
India’s Mindspace Business Parks REIT is set to pay INR 20.38 billion ($240 million) to acquire two-thirds of a Hyderabad office building, in a deal which will make the capital of Telangana state its largest market by area.
In an announcement this week, India’s second-ever real estate investment trust said it will acquire from its sponsor, local developer K Raheja, full ownership of a company holding 1.82 million square feet (169,000 square metres) of space in an office building leased to US tech giant Qualcomm, as occupiers continue to snap up office space in the city of over 10 million people.
“Located in Hyderabad’s prime central business district, this Grade-A+, fully leased asset enhances our portfolio, boosts income stability, and aligns with our growth strategy,” Mindspace REIT CEO Ramesh Nair said. “With a marquee tenant and mark-to-market potential, it reinforces our position as a leader in India’s commercial real estate sector and reflects our focus on strategic investments in high-quality, income-generating assets.”
The acquisition will give Mindspace REIT 65 percent of the space in K Raheja’s Commerzone Raidurg and make Hyderabad the largest city in its portfolio at 15 million square feet, surpassing its 14.5 million square foot holding in Mumbai. As of 31 December, the two cities comprised 81 percent of the REIT’s portfolio by leasable area.
15% Rent Escalation
At the stated compensation, Mindspace REIT is paying its sponsor the equivalent of INR 1,406 per square foot for the 2023-vintage asset, with the deal priced at a 7.5 percent discount to the average of two independent valuations.

Mindspace Business Parks REIT chief executive Ramesh Nair (Image: K Raheja)
Mindspace REIT’s new slice of Commerzone Raidurg is leased to Qualcomm for another 12 years, with the US tech giant paying INR 69 per square foot per month for the full building deal. Rents are set to rise 15 percent every three years under the terms of the lease.
Mindspace REIT is financing the acquisition by issuing INR 6.13 billion in new units, with INR 13.8 billion to be secured through debt and an additional INR 440 million financed from other sources.
Mindspace had rights of first offer for the property located 2 kilometres (1.2 miles) from Raidurg Metro station in Hyderabad’s Madhapur area under a pre-existing agreement.
The deal is Mindspace REIT’s second Hyderabad acquisition in the last three months, after the trust’s board in October approved the INR 2.75 billion purchase of 260,000 square feet of space in K Raheja’s Mindspace Madhapur Park in the city from a third party.
In its quarterly financials released last week, the trust said that it is evaluating an opportunity to acquire an additional Hyderabad office asset from a third party.
Hyderabad on the Rise
In a statement, Mindspace REIT CEO Nair said he expects vacancy in Hyderabad to drop significantly, as well as in Bengaluru, Pune, and Gurugram, as demand outpaces supply, helping to push up rents.
Occupiers leased a record 12.3 million square feet of office space in Hyderabad in 2024, according to a Cushman & Wakefield report this month. Deals exceeding 100,000 square feet accounted for 56 percent of leasing in the fourth quarter of 2024, according to the consultancy, largely driven by requirements from global capability centres, which are commonly used to provide outsourced services to multinationals.
As of the end of 2024, there are more than 355 global capability centres in Hyderabad including facilities serving Microsoft, Amazon, and Wells Fargo.
Other investors also picked up Hyderabad office assets in the past year. In May, Singapore sovereign fund GIC and private equity firm Xander Investment Management teamed up to buy a business park in the city for ($260 million), with CapitaLand India Trust agreeing during that same month to acquire 2.5 million square feet of office properties in the city.
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