Investor FAQ

  • A REIT is a vehicle that enables owners of real estate to pool primarily income generating assets together in a portfolio and allows investors to buy ownership in real estate assets
  • REITs are universally accepted by global institutions and individual investors as product that provides liquidity, transparency, diversification, dividends, and performance
  • In India REITs are governed by SEBI (Real Estate Investment Trusts) Regulations, 2014 which primarily lay down the framework in line with the global REIT’s standards including:
    • Minimum 80% of total value of assets to be comprising of completed and income generating properties
    • Debt to not exceed 49% of total asset value
    • Minimum 90% of distributable cash flows to be distributed

Mindspace REIT owns a quality office portfolio located in four key office markets of India. Portfolio has total leasable area of 33.1 msf and is one of the largest Grade-A office portfolios in India. Portfolio comprises 26.2 msf of completed area, 4.4 msf of under construction area and 2.5 msf of future development area, as of December 31, 2023.

Mindspace REIT’s growth strategy is to ensure stable and long-term growth of portfolio in prime office markets through:

  • Pro-active property management, asset improvements and tenant engagement
  • Embedded organic growth and new development opportunities
  • Value accretive acquisitions

Anbee Constructions LLP and Cape Trading LLP are the sponsors of Mindspace REIT.

Both Anbee Constructions LLP and Cape Trading LLP form part of the K Raheja Corp group, which is one of India’s leading real estate development and retail business groups, with experience of over four decades in developing and operating assets across commercial, hospitality, retail, malls and residential segments. K Raheja Corp group has leasable portfolio across various businesses of approximately 50 msf of commercial real estate, as of December 31, 2023.

K Raheja Corp group owns majority stake in Mindspace REIT.

Mindspace REIT's portfolio is valued at approximately INR 287 Bn as on September 30, 2023 as per Independent valuation as disclosed in the Q2 FY2024 Results Presentation.

The Manager declares and distribute at least 90% of the net distributable cash flows of the Mindspace Business Parks REIT as distributions to the Unitholders. Distribution is declared and paid on a quarterly basis.

Taxability in the hands of Unitholders depends on the nature of distribution. Provided below is the summary of different sources that can be earned by a unitholder and its taxability under the provisions of the Income-tax Act, 1961 ('IT Act')

  • Dividend : Dividend distributed by Mindspace REIT to Unitholders shall be exempt from Income tax in the hands of all Unitholders as per Section 10(23FD) of the Act as all the SPVs of Mindspace REITs have not adopted tax regime under section 115BAA of the Act.
  • Interest : Interest shall be taxable at the marginal tax rate applicable to the Unitholder. The TDS made on such distribution will be available as credit.
  • Other Income : Other Income distributed shall be exempt from income tax in the hands of Unitholder as per Section 10(23FD) of the Act, as Mindspace REIT has paid appropriate income tax on the same.
  • Repayment of SPV debt : Such distributions shall not be taxable in the hands of Unitholders till the cumulative amount of such distributions exceeds issue price of Unit (refer Section 56(2)(xii) of the IT Act) and shall be reduced from the cost of acquisition cost as per Section 48 of the Act.

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Units of Mindspace REIT are listed on National Stock Exchange & Bombay Stock Exchange in India.