Mindspace Business Parks REIT Approves Fresh ₹16,500 Crore Debt Fundraising Plan via NCDs and Commercial Papers
Mindspace REIT Authorizes Fresh Debt Issuance Capacity
On May 19, 2026, the Executive Committee of the Board of Directors of K Raheja Corp Investment Managers Private Limited, the manager of Mindspace Business Parks REIT, approved a debt fundraising program of up to ₹16,500 crore. The funds may be raised through non-convertible debt securities, commercial papers, or other permitted instruments, with issuances executed in one or more tranches.
The program is subject to the condition that aggregate consolidated borrowings do not exceed 33% of total assets. This ceiling aligns with Mindspace REIT and its SPVs having cumulatively raised approximately INR 16,400 crore through capital market instruments, including NCDs, Commercial Papers, Green Bonds, and Sustainability Linked Bonds as of early May 2026.
Recent Capital Raises and Refinancing Strategy
The approval comes less than two weeks after Mindspace Business Parks REIT successfully raised INR 500 crore through a 10-year Non-Convertible Debenture issuance on May 06, 2026. The issuance was fully subscribed by one of India's leading life insurance companies and carries a fixed coupon rate of 7.63% per annum, payable quarterly. The debentures hold AAA/Stable ratings from both CRISIL and ICRA.
Proceeds from that issuance were deployed towards refinancing existing borrowings. This debt capital raise is consistent with Mindspace REIT's strategy to lock in fixed rates for longer durations, ensuring predictability of debt servicing costs and protection against interest rate volatility.
Financial Position and Debt Management
As of March 2026, Mindspace's net debt stood at ₹11,572.9 crore with net debt to market value of 24.3 per cent. The REIT maintained healthy debt service coverage ratio of 2.90 and interest service coverage ratio of 3.38 for Q4FY26. The debt equity ratio remained stable at 0.83 for both Q4FY26 and FY26.
Portfolio and Market Position
Mindspace Business Parks REIT, sponsored by K Raheja Corp group and listed in August 2020, owns quality office assets located in four key office markets of India, namely Mumbai Region, Pune, Hyderabad, and Chennai. The portfolio has a total leasable area of 39.3 msf comprising of 32.0 msf of completed area, 5.4 msf of area under construction and 1.9 msf of future development, consisting of 5 integrated business parks and 9 quality independent office assets.
The portfolio maintains a diversified and high-quality tenant base, with over 284 tenants. Key listed REITs reported over 90% committed occupancy in FY26, with Mindspace at 97% excluding Hyderabad property.
About K Raheja Corp
K Raheja Corp is India's leading real-estate conglomerate with over four decades of excellence spanning across office, residential, hospitality, malls and retail business. K Raheja Corp operates its commercial business under the brands Mindspace and Commerzone with projects in Mumbai, Hyderabad, Pune and Chennai. As of 2017, K Raheja Corp had 20 million square feet of office space, making it the second largest commercial developer in the country. The group houses 3 listed entities with Shoppers Stop Ltd., Chalet Hotels Ltd. and Mindspace Business Parks REIT.