Mindspace REIT Sees India Office Demand Reviving on Vaccination

An information technology park in Bengaluru, India. (Photographer: Dhiraj Singh/Bloomberg)

Mindspace REIT Sees India Office Demand Reviving on Vaccination

Mindspace Business Parks REIT expects demand for office spaces will pick up over the next 9-12 months as vaccinations gather pace in India.

“We have seen, once the vaccinations have got administered, everyone has been wanting to get back to workplaces because we have seen massive challenges around managing work from home,” Chief Executive Officer Vinod Rohira told Bloomberg TV in an interview Thursday. “We are very confident a lot of people will be back on the desk.”

Mindspace REIT has seen its units rise about 6% since it became the second real estate investment trust to get listed on Indian bourses in August 2020.

Mindspace, which has business parks across Mumbai, Hyderabad, Pune and Chennai, leased 3.5 million square feet office space in the financial year ended March. Technology companies mainly contributed to demand, as they hired more people amid the pandemic, Rohira said.

The REIT plans to acquire more assets from its sponsors K. Raheja Corp Group. It returned 7% to investors last financial year, and Rohira said he aims to keep yields at similar levels.

©2021 Bloomberg L.P.

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