MINDSPACE — earnings call
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Prepared remarks
Unattributed
“Mindspace Business Parks REIT Q2 FY '26 Earnings
Conference Call”
November 06, 2025
MANAGEMENT: MR.
RAMESH NAIR – CHIEF EXECUTIVE OFFICER &
MANAGING DIRECTOR, MINDSPACE BUSINESS PARKS
PREETI CHHEDA – CHIEF FINANCIAL OFFICER,
MINDSPACE BUSINESS PARKS REIT
GOVARDHAN GEDELA – HEAD (CORPORATE
FINANCE), MINDSPACE BUSINESS PARKS REIT
Mindspace Business Parks REIT
November 06, 2025
Moderator
Ladies and gentlemen, good day, and welcome to the Q2 FY '26 Earnings Conference Call of
Mindspace Business Parks REIT.
As a reminder, all participant lines will be in the listen-only mode and there will be an
opportunity for you to ask questions after the presentation concludes.
Should you need assistance
during the conference call, please signal an operator by pressing ‘*’ then ‘0’ on your touchtone
Please note that this conference is being recorded.
I now hand the conference over to Mr.
Govardhan Gedela – Head (Corporate Finance).
you and over to you, sir.
Govardhan Gedela:
Good evening, everyone and thank you for joining the Earnings Call for Quarter 2 Financial
Year '26 of Mindspace Business Parks REIT.
At this point, we would like to highlight that the management may make certain statements that
may be looking forward in nature.
Please be advised that our actual results may differ materially
from these statements.
We do not guarantee these statements or results and are not obliged to
update them at any point of time.
I would now like to welcome our CEO & MD – Mr.
Ramesh Nair and CFO – Ms.
who will take you through the Business Update and the Financial Performance during this
We will then open the call to a round of Q&A.
And then I will now hand over the call to Ramesh.
Ramesh Nair
Thanks, Govardhan.
Good evening, everyone and thank you for joining us on this call today.
I am pleased to report another strong quarter for Mindspace REIT.
I am delighted to share that
in August this year, Mindspace REIT has completed five successful years of listing.
marks the completion of two years of my tenure at Mindspace REIT.
Over the last two years, we have delivered a strong and consistent performance.
risen from 315 in September 2023 to 455 at the end of September 2025 and annualized total
returns of nearly 26% till 30th September 2025 in the last two years.
Net operating income has gone up from Rs. 491 crores to Rs. 634 crores, again highlighting
GAV again has increased from Rs. 28,700 crores to Rs. 41,000 crores.
Distributions, again, has gone up from Rs. 284 crores to Rs. 355 crores as of this quarter.
Over the last two years, we have delivered sustainable growth, operational efficiency, and strong
unit holder returns.
We have definitely benefited from the favorable trends in Indian commercial
Our performance shows our ability to capitalize on this positive trend and grow.
Mindspace Business Parks REIT
November 06, 2025
We are sitting on significant firepower to capture India's office growth story.
acquisitions and development are our twin growth engines.
Our balance sheet strength gives us
flexibility and optionality.
We want our business to be predictable and we understand that steady
execution keeps all of you happy.
Let me start with an overview and outlook of the industry.:
A major milestone for the sector has been SEBI's reclassification of REITs as equity instruments.
This further enhances flows from equity mutual funds and potential domestic index inclusions.
This reform aligns India with global practices, deepening liquidity and broadening investor
Mindspace REIT welcomes this game-changing measure by SEBI.
the government and SEBI's commitment to a vibrant Indian REIT ecosystem.
market remains resilient amidst global macro uncertainty.
Flight to quality is real, and we are
trying to be that quality.
I would now like to share some highlights from the various IPC reports, which have come
in the last one month:
JLL reported that the India's office market hit a record 40 million square feet of net absorption
the first 9 months of 2025.
This marks a 28.4% year-on-year growth.
The third quarter alone
was the strongest of the year with 15.76 million square feet of net absorption, up nearly 40%.
Vacancy levels, again, has dropped by 40 basis points to 15.7%, marking the lowest level in 17
The CBRE report stated that the gross leasing surged to nearly 60 million square feet, the first 9
months of 2025, marking the highest level on record for that period.
Hyderabad and Pune
recorded the highest leasing to supply ratios, showing balance growth with minimal vacancy
Also, the CBRE stated that Navi Mumbai remains attractive due to availability of Grade A stock
and the relative cost advantages compared to other areas in Mumbai.
A recent Cushman and Wakefield report stated that Navi Mumbai has strengthened its role in
MMR. 23.7 million square feet of Grade A stock of which constitutes around 20% of MMR's
total stock of 120 million square feet, 87% of this is occupied.
Average quoted rentals of Rs. 70,
which is 57% lower than prime MMR sub-markets.
Atal Setu and the Navi Mumbai International
Airport are all helping in this.
Infra upgrades, cost-effective supply and deep talent are drawing
occupiers towards Navi Mumbai.
The report also stated that Navi Mumbai's integrated and
scalable urban framework is perfectly positioned to absorb the next wave of real estate growth.
Now let's look at Mindspace REIT’s performance.
The key announcements for Quarter 2
FY '26 include:
November 06, 2025
We delivered a very strong gross leasing of 0.8 million square feet this quarter.
portfolio's committed occupancy increased to 94.6% on a like-to-like basis.
the recent Q City, acquisition of Q City, which we acquired around three months back,
which is now rebranded as the Square 110 Financial District, our committed
occupancy stands at 93.8%.
This is the highest since listing.
Our NOI in Q2 grew by 25.8% year-on-year to Rs. 634 crores.
This is again the highest
growth since listing.
We delivered a strong distribution growth for the quarter at 16.3% year-on-year.
growth again was 13.2% year-on-year to 5.83 per unit. 5 out of our 11 assets have a
committed occupancy of 100%.
Two more parks have 98% plus occupancy.
Since the demarcation guidelines came out in December 2023, very happy to report
that we have demarcated 2.65 million square feet.
And out of this 2.65 million square
feet, we have leased nearly 2 million square feet.
Airoli West occupancy has increased from 72% to 94%.
This reaffirms our belief in
Navi Mumbai's growth story and the strength of our collective vision.
occupancy in Airoli also went up from 76% to 87%.
Lease rentals have grown with
new deals are happening at Rs. 70 in Airoli.
Our focus now lies in reducing vacancy in Airoli East.
Mindspace Fusion, our F&B
hub, so outlets like Starbucks, PopTates, Pizza Express opened last quarter along with
Crossword Book Store.
The 22 new F&B and retail outlets will help further increase
the occupancy in Airoli East.
As a public facing retail destination, this will also bring new energy to the park.
are awaiting one final approval to begin development of the Hyatt Regency Hotel
within our Airoli East campus.
With ongoing upgrades, Airoli East will become an
even more attractive destination for marquee occupiers.
Let's now look at the operating and growth highlights:
Re-leasing spread again was a very impressive 28.1% for this quarter.
We also delivered robust
growth in rentals across our micro markets, especially Madhapur, Hyderabad.
first deal at Rs. 100 per square feet in this market.
This showcases our mark-to-market potential
A global healthcare giant vacated the space at Rs. 40, and we leased that to a flex player at Rs.
An IT services client renewed their lease.
A global healthcare giant vacated the space at Rs. 40, and we leased the same place to a flex
player at Rs. 99.
An IT services client renewed their lease at Rs. 95 after the term ended at Rs.
November 06, 2025
In Airoli West, a global fintech company which vacated the space at Rs. 61, and we leased it to
a green logistics company at Rs. 72.
We are actively working on under construction pipeline of around 3.7 million square feet.
clocked a healthy NOI income growth of 25.8% as mentioned before to Rs. 634 crores.
also seen a 25% year-on-year growth in H1 to Rs. 1,250 crores.
Our loan to value still remains low at 24.2% and this demonstrates good balance sheet strength.
Our GAV of our portfolio today stands at Rs. 41,000 crores.
We declared distribution of Rs. 355
crores for Q2 FY '26.
We have cumulatively distributed since listing Rs. 5,952 crores.
In terms of portfolio growth:
As you are aware, strengthening our portfolio through strategic acquisitions remains a priority.
Over the last nine months, we have grown our completed portfolio size by over 4.2 million
This is through a judicious mix of organic and inorganic growth strategies.
Organically, we successfully constructed and leased 1.3 million square feet, mainly the R2
building in Pune and the DC building in Mumbai.
Our inorganic growth strategy included acquisition of a sponsor ROFO of 1.8 million square
feet, a large external third-party acquisition of 0.8 million square feet, and consolidation within
our parks of around 300,000 square feet.
Going forward, we would like to be more focused on acquisitions, which augur well for our
portfolio, to stimulate growth.
Our platform is built to scale, and we continue to focus on
acquiring high-quality assets in core markets.
On each of our projects:
At Mindspace Airoli East, we launched Mindspace Fusion, like I mentioned earlier, and it is
already busing.
We are elevating their retail and F&B choices across all our parks.
Nation, Game Ranch, Flurries are also opening this month.
Upgrades have begun in buildings B1, B9, B10, B11 and B12 in Airoli East.
We are refreshing
arrival lobbies, landscaping and façades to current design benchmarks.
The clubhouse again is
at a design phase for planned enhancements.
Podium and terrace level sports and recreation are
underway to boost tenant engagement.
Continuous Park upgrades and redevelopments keep our assets future ready.
Airoli East, buildings B2 and B3 along with the central food court are slated for an upgrade.
project is currently in the design phase.
November 06, 2025
We already have two data centers operational.
The next three will go live in a phased rollout.
Mindspace is the only REIT with a sizable data center portfolio.
Upon completion, the portfolio
will house 1.7 million square feet of data center space.
Our early move into data centers positions
us uniquely in the intersection of real estate and digital infrastructure.
At Mindspace Madhapur, within our 10 million square feet park, current vacancy stands only at
198,000 square feet.
Like I mentioned earlier, with Madhapur rents rising, for the first time we
touched Rs. 100.
The Pearl Club, which we used to previously call the Experience Center, is on
track for Q4 FY '26 completion.
Building redevelopments are underway.
B1 is 100% pre-leased and ready for handover in Q1
B8 is slated for Q4 FY '27.
We are seeing very strong enquiry and expect to close many
prospects soon.
Phased enhancements continue with emphasis on infrastructure and ambience.
In a hybrid world, tenants are gravitating towards best-in-class campuses, and we are truly
leading the shift in Hyderabad.
At Gera Commerzone Kharadi, Re-Vibe, our multi-purpose amenities center that has launched
last quarter, is receiving great response.
Uptake is strong and our tenants use the spaces very
Fitouts are in full swing at the R2 building following its delivery to our GCC clients
and rents have commenced last month.
At Commerzone Yerwada, upgrades are focused on creating a livelier, more immersive campus
B7 is undergoing a phased lobby refresh.
Work is progressing as per schedule.
Facade and lobby upgrades are being planned.
Building B1 is set for enhancements including a
new food court lobby and facade upgrades.
Plans are again underway for terrace amenities to
revitalize the center and to revitalize the Central Recreation Garden.
On customer centricity, we always prioritize our clients, their feedback, and requirements.
advanced our H23 program, which had 23 measures to bring a hotel-like experience in our park.
Lobbies are being reimagined with five-star hospitality vibe.
We offer vibrant breakout zones, indoor games, music corners, cafe seating.
Amenities being
strengthened with more offerings at food courts, terrace activations, clubhouses and covered
These come together for a smoother, richer campus experience.
Elevator upgrades
are underway based on life cycle assessment findings.
We conducted 16 B2C events across six parks drawing thousands of employees.
remain focused on our portfolio upgrades.
The playbook is very simple.
Build, lease and upgrade endlessly, the goal being to lift rentals
while enhancing day-to-day experience for occupiers.
We are channelizing Capex into asset
modernization to strengthen stickiness and renewals.
Priorities are shaped by voices on the
November 06, 2025
They are doing lot more surveys, audits, and continuous tenant opinions.
initiatives will help us attract quality of tenants and also to keep quality tenants.
I would like to highlight here that talent quality also drives value of the parks, not just the
Our investor narrative is very simple and consistent.
Quality occupiers, disciplined
growth, and stable returns.
On the ESG front, this quarter, in GRESB 2025, we retained a global sector leader status in the
Office-Listed Development Benchmark for the third straight year.
We obtain BSE five-star
ratings for 11 assets across the portfolio.
Renewable energy now contributes 50% of our energy
Energy efficiency measures will help us meet our targets under sustainability-
linked finance.
In conclusion, let me address concerns that were highlighted over the last few quarters and
how we have addressed them:
Basically, concerns we have heard from all of you.
Last quarter, global uncertainties from the
West posed concerns, yet our performance reflects the business's strong resilience to global
Navi Mumbai vacancy was a key concern.
Mindspace Airoli West now stands at 94%
And Mindspace Airoli East stands at 80%.
Together, Mumbai occupancy, Navi
Mumbai stands at 87%.
Leasing SEZ spaces was a challenge which we closely monitored.
As mentioned earlier, 2
million square feet out of our 2.6 million square feet of NPA converted space is successfully
I also wanted to take this opportunity to highlight our new leadership team.
Before I conclude, I
wanted to share this that Venkat Nilakantan has joined us as Senior Vice President and Head
Asset and Facilities Management.
In this role, Venkat will be the head of Camplus-FM business
vertical, across a Pan-India office portfolio.
Venkat was previously the global CRE head of
Sreekanth Reddy has joined us as Senior Vice President and Head Leasing South.
capacity, Sreekanth will lead the leasing for South India.
Sreekanth was previously the Managing
Director of Cushman and Wakefield.
Both of them will be based out of Hyderabad, highlighting
our focus on decentralized and strong regional leadership.
November 06, 2025
India's commercial office market remains resilient backed by strong fundamentals.
being driven both organically through developments and upgrades and inorganically through
carefully selected value-accretive acquisitions.
Our financial discipline remains unwavering with strong cash flows, low leverage, and prudent
capital management underpinning consistent growth.
Our philosophy is simple and proven, lease
rapidly, build efficiently, manage smartly, and create workspaces that people love and businesses
We thank each of you, our analysts for your continued support and guidance that has helped us
improve, at Mindspace REIT, we continue to build loved workspaces and maximizing value.
Thank you all for your time.
I will now hand it over to Preeti for further financial updates of the quarter.
Preeti Chheda
Thank you, Ramesh.
Good afternoon, everyone.
I am pleased to present the ‘Financial Results’ for the Quarter Ended September 30th,
Mindspace REIT continues to deliver healthy financial performance, aided by strong operating
Our NOI for Q2 FY '26 grew 25.8% Y-o-Y to INR 6.3 billion.
Revenue from operations for Q2 FY '26 increased by 24.8% Y-o-Y to INR 7.8 billion.
recorded a healthy 16.3% Y-o-Y growth in distributions for Q2, totaling INR 3.5 billion.
DPU grew 13.2% Y-o-Y to INR 5.83 per unit.
The GAV of our portfolio grew about 12% to INR 410 billion as at September 2025.
growth was driven, amongst others, by rental increases across the micro markets, particularly
Madhapur, Hyderabad, where the recent transactions have demonstrated a strong growth in
NAV of our portfolio also grew by 12% from Rs. 431.7 per unit at March '25 to INR 483.7 per
unit at September '25.
I would like to highlight here that we have consistently added value to our existing portfolio
through park enhancements, redevelopment, creating new spaces like Club in Hyderabad, High
Street in Airoli East, diversification into data centers, adding newer buildings which were not
envisaged at the time of IPO, and so on.
Mindspace Business Parks REIT
November 06, 2025
All of these collectively, of course, coupled with strong operating performance, have contributed
to our NAV per unit, growing almost 50% from INR 326 per unit at the time of IPO to INR
483.7 per unit now.
Our LTV, as Ramesh mentioned, continues to remain low at 24.2% as of September '25.
had mentioned in the last quarter earnings call, we are working to convert some of the continuing
variable cost debt, which is at our SPVs, to fixed cost borrowing and also looking at longer
tenure so that we can lock the lower coupons for a long term.
With the rental growth at our parks, Airoli occupancy steadily increasing, our under construction
portfolio progressing as per schedule, inorganic growth, supported of course by conducive
interest rate environment, we believe we are well poised for a healthy NOI and DPU growth
With this, I hand over the call to the operator to open the floor for questions.
Questions and answers
Moderator
Thank you very much.
We will now begin the question-and-answer session.
The first question
is from the line of Karan Khanna from Ambit Capital.
Please go ahead.
Karan Khanna
Just a couple of questions from my end.
Firstly, if I look at Slide #11, Madhapur Tower 1A and
1B are already 100% pre-leased to a GCC.
But what is the thought process regarding Tower 7
and 8, given it is near completion within next four or five quarters?
Are you in active discussions
with potential tenants regarding pre-leasing of these towers?
And as a follow-up, what sort of
tenant profiling rentals will you be targeting for these towers?
Ramesh Nair
Karan, great question.
In my 26 years in commercial real estate, I have never seen such a vibrant
market, what I am seeing in Hyderabad at this moment. 1.5 years back, rentals were just around
Rs. 75, Rs. 78.
Today, everything is going between Rs. 95 and Rs. 100.
We are very confident B7 and B8, which is 1.6 million square feet, which is expected to get
ready by Q4 FY27, will get pre-leased very soon.
For this 1.6 million square feet, I was just
checking with my leasing head, Sreekanth, what is the amount of enquiries we have?
close to 5.5 million square feet of enquiries already for this 1.6 million square feet.
confident and very soon we should be able to start giving good news.
It is a big building.
So, we would at least have four or five tenants here, but inquiry sizes ranging
from 100,000 square feet right up to 800,000 square feet, we are in discussions with many, many
global large GCCs for this building.
Construction is on track.
I was there last week.
to finish construction by Q4 FY27.
Mindspace Business Parks REIT
November 06, 2025
Karan Khanna
This is helpful, Ramesh.
My second question is relating to the overall thought process regarding
third party and sponsor acquisitions.
Given your net debt remains in the comfortable range of
sub-25%, will the focus be first towards completion of under-construction and future pipeline of
3.7 and 3-odd million square feet, respectively, before pursuing these opportunities?
open to evaluating these opportunities at the right time?
And as a follow-up, if you can also
provide some current leasing status of some of the large sponsor assets, including in Juinagar and
perhaps at Altimus as well?
Ramesh Nair
So, good amount of assets we are looking at right now.
Definitely the focus is not just on
development assets, that will continue whatever the 7.7, 7.1 million square feet.
execution-driven company.
The key focus is on converting land to cash flows.
That continues.
But as we talk right now, we are looking at multiple third-party assets, multiple ROFO assets,
two, three, very good ROFO assets.
Altimus is something where the sponsor has seen very good
amount of leasing traction, nearing 80% plus number.
Ascent, again, a building which is close to Altimus.
Again, it is something which, again, these
are sponsor assets.
At the right time, we would make offers for these, but good leasing traction,
given all the challenges today BKC is facing.
Demand is moving outside of BKC markets around
So, good traction in markets like Worli.
Karan Khanna
So, just as a follow-up, we are also seeing a lot of activities in the Bangalore market with nearly
all your peers now having a presence in the Bangalore market.
So, what is your thought process?
Will you be actively evaluating opportunities here or would you look to go deeper in some of
your existing markets where you have a large presence overall?
Ramesh Nair
So, we look closely at two assets in Bangalore.
One, we were not the highest bidder.
The other one, there were huge traffic issues, so we gave it up.
So, these are the
Karan Khanna
And lastly, on exit occupancies, given the portfolio occupancy and committed occupancy is
already at 89% and 92% respectively, what is the exit occupancy guidance for FY '26?
you can provide some color for FY '27 as well, that will be helpful.
Ramesh Nair
We are looking at coming close to the 95% mark.
That's what we had said at the beginning of
the year and on track to come to the 95% mark at the end of this financial year.
Karan Khanna
And for FY'27, any internal targets that you would like to share or is it too early to comment on
Ramesh Nair
The next call, we should be able to give some guidance on that.
Karan Khanna
This is helpful.
Thank you and all the best.
Mindspace Business Parks REIT
November 06, 2025
Moderator
The next question is from the line of Mohit Agrawal from IIFL.
Please go ahead.
Mohit Agrawal
Good afternoon, everyone.
My first question is on your NAV increase.
So, the last two times,
the NAV increase has been in double digits and if you look at over a year, the NAV is up 23%,
almost 90 bucks.
Could you elaborate the reasons?
And more than that, is it some kind of a reset
that you are seeing?
And if yes, then should we expect this to continue like next six months in
March also should we expect a double-digit kind of?
So, what is the color you can give on the
Ramesh Nair
I will give a couple of insights and then Preeti can add to it.
So, like I mentioned, the Hyderabad
market has just gone crazy in terms of rentals, in terms of demand.
You saw that record land
prices where land was sold at 170 crores an acre.
This is the same land which K Raheja Corp
purchased at 30 lakhs an acre.
I will just repeat it. 30 lakhs an acre, has today become 170 crores
Obviously, rentals have gone through the roof.
People have underwritten these 170
crore, 140 crore land deals at 130, 140 kind of rentals.
So, that's the first part.
Over the years,
what all commercial developers and REITs have done is efficiencies back 10 years-12 years
back used to be 78%-77%.
That's kind of dropped to a 70% mark in almost all parts of the
country, except in places like BKC, where efficiency today is at 60%, even lower.
adjustments is something which again we have done.
So, these are the two factors which has
contributed to increased NAVs.
Airoli also there's been increased rentals, where you heard about
me talking about Gigaplex occupancy going up.
And these are some of the valuations,
assumptions, which the valuer has told us about.
Preeti Chheda
If I can just add, Ramesh rightly mentioned, a big chunk of the growth between March '25 and
September '25 has been attributable to Madhapur rentals.
The valuer earlier had assumed 85 rent
and has now reset it to 95, which is where the deals are happening.
In fact, they are happening
even higher than that.
So, that has been one of the largest contributors to the valuation at this
But generally, to answer your questions in terms of how you should be looking at valuation
So, as I mentioned a while back, if you look at the way our NAV has grown
almost 50% since IPO, of course, operating performance has been one of the largest contributors.
But alongside that, we have continuously adding value to the portfolio, like redevelopments have
added to our NAVs.
The newer leasing areas, which we have created, whether it be Pearl Club,
High Street, or even newer buildings which we had not even envisaged at the time of IPO.
data centers, which have added value.
Now, all of these have also contributed to our NAV.
these are certain things which we will continue to do going forward.
So, to again sum up, one of
course, our strong operating performance, our rental growth across our parks, including Airoli,
needless to talk about Hyderabad, that's going to add operating performance as we complete our
developments on the 7 million square feet.
That's going to add to the NAV.
And of course, all
the enhancements, redevelopments, newer buildings that we keep adding to our existing
portfolio, all of them collectively should be able to contribute to a healthy NAV growth as well.
Mindspace Business Parks REIT
November 06, 2025
Mohit Agrawal
Understood, Preeti.
So, this 85 to 95 reset, now I think in the next round, you do expect
this to kind of moderate it to a high single digit, low double digit number or where do you see
Preeti Chheda
So, it depends on where exactly Hyderabad rents move.
If this rental growth continues for the
next few quarters, years, I don't really know, then accordingly, I am expecting that the valuer
will keep resetting the rental.
Ramesh Nair
There's absolutely no space available in this market.
And that's what you saw those massive land
deals happening at those 140 crores and 170 crores.
So, that's the game.
And I mentioned it
earlier also, our rentals have already touched 100.
And these are for some of our older buildings.
And newer enquiries, we are confident we should be able to do it more than 105 kind of numbers.
Mohit Agrawal
My second question is, Ramesh, in your opening remarks, you sounded
optimistic on Airoli East.
And in answer to the previous question you had mentioned, you
reiterated 95%.
Now, for that, obviously, the Airoli East occupancy has to move up meaningfully
from that 80 mark.
Where do you see this number?
Let's say any indicative specific target on
Airoli East by end of FY'26?
Ramesh Nair
So, 4-5 things, Mohit.
First is, there's not much of space left for us in Gigaplex.
occupancy has already touched 94%, which means we only have excess space in Airoli East.
Some of our nearby parks, there were a couple of competing, three competing parks.
also seeing good traction.
There's not much of space left.
Everybody knows about these
government initiatives in terms of Navi Mumbai.
The airport is already a reality opening anytime
Everybody knows about Atal Setu.
There's multiple flyovers, tunnels, all that.
which is, we got the idea from DLF Cyber Hub, that's a mini version of Cyber Hub, which we
have created in Airoli East, which again is something which is seeing a lot of traction.
going to have 22 F&B outlets.
You would have recently read about the Maharashtra GCC policy,
which was announced by the government.
The GCC policy is a mix of many good GCC policies
across the country.
So, very proactive efforts by the Fadnavis government.
I think all these would
lead to, and people can't afford the kind of rentals today.
Let's say JP Morgan in Nirlon or
Morgan Stanley in Commerce 3.
Those kind of global capital back offices, very few companies
So, I think there is a clear opportunity, given that rentals in Navi Mumbai are only
I think it's a matter of time before you see a good amount of leasing happening.
the top Indian banks like HDFC, Axis, IDFC, ICICI, all of them have big global back offices in
Mohit Agrawal
Just a couple of small clarifications.
Is Fusion now completely up and running?
secondly, on hotel, you mentioned you will be waiting for the last approval.
What is the revised
completion timeline for that?
Mindspace Business Parks REIT
November 06, 2025
Ramesh Nair
So, hotels, from the time we get the approvals, that will be around 3 years to complete.
22 F&B outlets, of which we have leased 20.
Five have opened up.
Another five will open up
The balance fit-outs are happening, and we will lease two in the next 30 days.
it's coming up well.
You should try and visit, Mohit.
Mohit Agrawal
Thanks a lot and all the best.
Moderator
The next question is from the line of Yashas Gilganchi from BOB Capital Markets.
Please go ahead.
Yashas Gilganchi
Good afternoon, team.
Thank you for taking my question.
Despite record office absorption year-
to-date, it seems like leasing momentum is slowing for most office REITs.
What do you think is
causing this decline?
Ramesh Nair
Leasing momentum for India or leasing momentum for Mindspace REIT?
Yashas Gilganchi
For India and also for Mindspace.
Ramesh Nair
Not exactly, Yashas.
This is a question.
I have a small WhatsApp group of 10 commercial leaders
including IPC leadership and commercial real estate developers.
I ask this question at least once
a week or once a fortnight to them.
I haven't heard any negative.
There are two times I heard
some amount of slow speed in decision making.
One was during April, during that Liberation
Day tariffs time.
Second was during that May time when the India-Pakistan war was happening.
We are keeping very, very close eye on this.
No signs so far, but that's something we are tracking
Two things we track all the time on a fortnightly basis.
One is tariff-related impact
and the other is AI-related impact.
Till now, no negative news, unless you have heard something.
Yashas, it will be good to hear your views on that.
Yashas Gilganchi
Nothing specific.
Maybe we will take it offline.
Ramesh Nair
Yashas, I will just add one point here.
IT services definitely has slowed over the years.
of portfolios, you will see it.
But that's exactly the demand which is going to GCC.
day, I was sitting with JP Morgan.
They have 65,000 employees in India.
Accenture today has
380,000 employees in India.
Lot of these guys are expanding.
I was shocked to hear that a new
company in Hyderabad, a new company, this is the first entry into India, is taking 800,000 square
feet in one shot.
Previously, 20 years back, a company would take 200 seats.
Today, people are
willing to bet on 5,000 to 6,000 seats in their entry strategy into India.
So, something we are
tracking closely.
Mindspace Business Parks REIT
November 06, 2025
Yashas Gilganchi
The details are very helpful.
What do you think is the stabilized occupancy level at
The Square, 110 financial districts?
And how long do you think before the asset can reach that
Also, what is the upside you see in the lens?
Ramesh Nair
So, The Square 110 Financial District is something which is 800,000 square feet.
levels in Square today is around 250,000 to 300,000 square feet.
We are quite confident in the
next 3 to 6 months we should be able to fill most of this space.
And what is helping us in this
filling up is absolutely no space being available in Hitech city Madhapur region, because of
which the demand is slowly shifting towards financial districts.
So, companies want to be in
Hyderabad, but if they don't get space in Hitech cities, they would rather travel 20-25 minutes,
go to the other side of town, and take space there.
So, that's what we are seeing.
So, in the next
six months odd, we should be able to close a lot of the space.
So, Yashas, in terms of Square
vacancies, we are talking to multiple clients.
There's a 50,000 square feet client.
There's a 80,000
square feet client.
There's a 30,000 square feet client.
And we are also talking to a large 200,000
square feet client.
So, if some of this close, I think we should be comfortable.
Yashas Gilganchi
And lastly, as we evaluate opportunities for acquiring assets, how do you describe the
market at this time today?
Are there any challenges?
Ramesh Nair
I think what we were seeing in terms of bid-ask spreads is slowly kind of narrowing as fund life
of many companies kind of come to an end.
There is obviously a little more pressure to sell.
There is not too much of difference between cap rates, which are being quoted, and which are
getting closed.
I think the number of buyers remains the same, 5-6 buyers who are there.
given that we have local teams in many of these cities, our understanding of these assets, we do
a lot of due diligence before we place an offer.
It's not just Excel modeling, which we do.
Yesterday, we were looking at an asset in South India, and there were a team of 25 people who
spent the full day in the asset, evaluating the overall asset.
So, from our licensing team to asset
management team to leasing teams to engineering, planning, scheduling, all those have great
teams, all were at the site.
So, this is an art which we have perfected now how to acquire third-
party assets, and that continues, Yashas.
Yashas Gilganchi
Thank you very much.
Moderator
The next question is from the line of Pritesh Sheth from Axis Capital.
Pritesh Sheth
Thanks for the opportunity and good evening to the team.
First, I am just continuing on the
We saw negative NOI and negative NDCF as well.
At what occupancy do you think
it breaks even and by what time frame do you think that it will start being accretive to NOI,
Mindspace Business Parks REIT
November 06, 2025
Preeti Chheda
So, this quarter, because it was an asset where a lot of work had to happen, of course,
there's more work to do, but we therefore spent a decent amount of money this quarter on some
urgent repairs & Maintenance, etc., which will be done.
And that's the reason why you've seen
negative NOI and NDCF this quarter.
But going forward, of course, we have some upgrades
which we want to do, which is going to be more in capital nature.
So, those are not going to hit
Of course, some repair work will still continue.
That will happen.
going forward, we should probably, I mean, in all possibilities, start seeing positive NOI and
Ramesh Nair
I'd just like to add here, Pritesh, that if you remember when we bought the asset, we had bought
it at a cap rate of 9.9%.
And the reason for that was it was a mix of a core plus and value-add
kind of an opportunity where we could upgrade.
And what Pritesh just mentioned is the money
which we are spending in immediate upgrades that are also going to be medium-term upgrades
where we are going to be spending money.
Pritesh Sheth
That's helpful.
And second on Madhapur, so now we have opened one more
block for development.
I guess it was there earlier as well, but we are reporting it in the
presentation, probably for the first time.
Just on the FSI potential in that part, how much we can
go till in terms of FSI utilization?
How much we have already utilized?
And taking the density
into consideration, what would be the optimum FSI potential that we would be looking at?
any other redevelopment opportunities in near term since we are close to delivering the two
redevelopments that we have already taken up?
Any other redevelopment opportunities that you
think of starting in near term?
Ramesh Nair
So, this is our B18 plot in Hyderabad.
In a 110-acre campus, this is probably the most prime plot
given that this is right in the entrance, main road facing.
Here the FSI potential is of leasable
area is around 530,000 square feet.
We just got approval.
This is previously there was a small
legal issue which got sorted last year, post which we had approved, we had sent the files for
And this 530,000 square feet, we have started excavation work.
This is going to be a
mixed-use kind of development, and this is of the full path, so 10 million which is ready, 1.5
million square feet which is B1, 1.7 million square feet which is B8, and add another 530,000
square feet to that.
So, that's the total park as it stands today, Pritesh.
Pritesh Sheth
Any further potential to be unlocked?
Ramesh Nair
There is decent FSI potential.
We have been doing some analysis on that.
Given the size of the
park, it all depends when some large tenants vacate, when we could get redevelopment
opportunities, but one good thing is we have done two redevelopments there, so we understand
that potential.
There are still many occupiers, many buildings there, which was done in the old
FSI of two, and as and when people serve notices, we could create a six and seven kind of FSI
So, big opportunity.
Don't want to put a number there, but the number is quite a decent
number, which will keep us busy for the next few years, and similar redevelopment opportunities
Mindspace Business Parks REIT
November 06, 2025
available even in Airoli.
Given that in all Indian cities, FSI which used to be 2 around 12 years
back has gone to 5-6-7, so good opportunities.
We are waiting for when tenants vacate to kick-
start the plan.
There are some places where we know the tenants could vacate and where we are
getting ready with the plan, concept, designs, all that.
So, we should be able to do some
announcements over the next couple of quarters.
Pritesh Sheth
Just on Airoli, I mean, till now we have had largely the back office clients or tenants.
With airport now in proximity, do you think there's a potential to also attract a front office client
leading to better rentals or we are still far away from thinking about that opportunity?
Ramesh Nair
Front office is going to be a little difficult right now given that there's a lot of front office demand
in places like Worli and BKC and Kalina and all these kind of locations.
Front office is going to
be a little difficult, but good robust back office, mid-market demand would come.
market typically would go to areas like Andheri kind of market, some of that Kurla kind of
market, those kind of demands could come to Navi Mumbai.
Not front office, we haven't seen
much of demand.
Pritesh Sheth
And with sort of this mid-market demand, these tenants do have a potential to pay higher rentals
or 75-80 is what we should expect at the max?
Ramesh Nair
So, our focus, Pritesh, has always been occupancy over rent and high quality tenants.
Navi Mumbai is something we marginally keep increasing every time we do a deal.
how we would like to take it given that there's a decent vacancy available in that market.
not going to suddenly jump to Rs. 80.
So, every time we do a deal, we will increase it by a couple
Pritesh Sheth
That's it from my side.
Moderator
The next question is from the line of Parvez Qazi from Nuvama Group.
Parvez Qazi
Hi, good evening.
Congratulations for a great type of number.
So, a couple of questions from
When you refer to the additional 0.53 million per feet FSI potential in Madhapur, are
you referring to building 18 that we have there?
Ramesh Nair
The one in the front lot.
Parvez Qazi
Secondly, I know this question was asked earlier but now given that we have largely two
assets only where we can lease out additional space, financial district, you already said that you
accept most of the space to get leased out over the next four months, which would then leave
only Airoli East with us.
So, over the next 1 year to 1.5 years, what is the kind of leasing that we
Mindspace Business Parks REIT
November 06, 2025
can do in Airoli East?
That's the first question.
And second, what would be the occupancy in the
SEZ versus non-SEZ space that we have?
Ramesh Nair
SEZ versus non-SEZ.
Let me just find out what is the exact breakup.
So, like I mentioned, the
total 1.8 million square feet vacancy in this SEZ is 1.3 million square feet.
occupancy today stands at 96.2% and SEZ occupancy stands today at 91.8%.
Airoli East, I have
to put a number, there have been years where we have leased a million square feet, there have
been years where we have leased half a million square feet, but demand is decent given that the
enquiries are definitely increasing and there's not much of space available.
There is Tata Realty
has done a good project close by that got taken by one client, 600,000 square feet.
next set of demand will start coming more towards our part.
So, in terms of newer spaces, there
will be many opportunities.
We are looking at at-least 7-8 different redevelopment opportunities
across our portfolio over a period of time, Parvez.
Preeti Chheda
And also, Parvez, just to add to what Ramesh said, now actually there's no distinction between
SEZ, non-SEZ spaces because you are today, within like 45 days, able to convert SEZ spaces
So, honestly, there is nothing like SEZ, non-SEZ anymore.
Parvez Qazi
Thanks and all the best to you.
Preeti Chheda
Thank you, everyone.
Moderator
As there are no further questions from the participants, with that we conclude today's
conference call.
On behalf of Mindspace Business Park REIT, that concludes this conference.
Thank you for joining us and you may now disconnect your lines.