“‘RETURN TO OFFICE' IS PLAYING OUT IN INDIA AS WELL”

Mindspace Business Parks REIT (real estate investment trust) offers one of the largest, grade A office portfolios in India spread across Mumbai, Hyderabad, Pune and Chennai. Mindspace REIT is managed by K Raheja Corp Investment Managers LLP. VINOD ROHIRA, CEO, Mindspace REIT shares with ASHISH SINHA of BW Businessworld how the hiring done after the pandemic is leading to a renewed demand for grade A office spaces that conform to compliance, governance, health, and safety protocols. Excerpts:

- ASHISH SINHA

How was the last quarter for Mindspace REIT?

We continue to witness strong leasing activity across our portfolio with over 2.1 million square feet (msf) leased in the first half of this financial year. We remain increasingly confident of the commercial market outlook, buoyed by record tech hiring and growth trends, improved GCC prospects, vaccination coverage in our gateway cities as employees return to the office. We are excited about the robust demand cycle re-emerging.

The REIT has recorded robust gross leasing of 9 lakh sq ft, with an average rent of Rs 88 per sq ft a month across 11 deals concluded during the quarter. It has also concluded another build-to-suit lease of 5 lakh sq ft at Mindspace Juinagar in Mumbai region. Over the last two quarters, it has leased 2.1 million sq ft in total.

The REIT has raised around Rs 400 crore through issue of debentures at project level at 6.1percenthelping the reduction in average cost of debt further by 15 basis points to 6.9percentas of September end.

The July-September quarter has already witnessed a sharp uptick in the absorption of office space led by leasing activity in the information technology and IT-enabled services sector.

The commercial real estate sector is on the path of gradual recovery with majority of companies announcing end of WFH. How do you see the demand and leasing activity in the coming few months?