Mindspace REIT Board Approves Potential Divestment of Mindspace Pocharam, Hyderabad; Asset Fully Denotified from SEZ Status
Mindspace REIT Exits Pocharam; Board Approves Divestment
Mindspace Business Parks REIT's board has approved the denotification of Pocharam from its SEZ status and appointed advisors for the asset's divestment. The Hyderabad property, built by K Raheja Corp, was designed to meet the needs of companies requiring large-scale office spaces at lower cost than western Hyderabad markets.
Market Conditions and Asset Performance
The decision reflects broader market pressures. As of July 2025, Mindspace Pocharam comprises 1 million square feet of leasable space, with 600,000 square feet already completed and operational. The current occupancy stands at approximately 37.5%, indicating the underutilization that prompted the board's action.
Unlike Hyderabad's congested IT zones of Hitec City and Gachibowli, Pocharam offers more space and lower rental rates. Rental rates at the property range from ₹22–₹35 per square foot, depending on finish and floor size—substantially below premium western corridor rates.
Location and Connectivity
The campus is directly connected to the Warangal Highway with close proximity to the Outer Ring Road, offering easier access from areas including L.B. Nagar, Dilsukh Nagar, Nacharam, and Secunderabad. Nearby sits the Infosys Pocharam campus, a major IT hub that reinforces the area's technology credentials.
Future Connectivity Plans
Hyderabad's Look East IT policy, proposed Metro Phase 2 connectivity, and the upcoming Regional Ring Road are expected to further strengthen the micro-market. However, the asset's current performance suggests that planned infrastructure improvements alone have not been sufficient to attract sustained IT tenant demand.
Mindspace REIT's Broader Portfolio Strategy
Mindspace Business Parks REIT, sponsored by K Raheja Corp group, listed on Indian bourses in August 2020 and owns quality office portfolios in four key Indian office markets: Mumbai Region, Pune, Hyderabad, and Chennai. The portfolio comprises a total leasable area of 33.6 million square feet, consisting of 26.3 million square feet of completed area, 4.4 million square feet under construction, and 2.8 million square feet of future development, distributed across 5 integrated business parks and 5 independent office assets.
The Pocharam divestment is part of the REIT's broader portfolio optimization. The facility has been fully denotified from SEZ status and Mindspace REIT is in the process of identifying a suitable buyer.
About K Raheja Corp
K Raheja Corp is a property developer in India with interests in commercial and residential projects, malls and hospitality across multiple cities, and is the second largest commercial developer in India. Founded in 1956 by Chandru Raheja, K Raheja Corp was formed after a split between Raheja brothers as a separate group.