STRONG PRESENCE IN FOUR KEY OFFICE MARKETS OF INDIA
The office markets of Mumbai Region, Hyderabad, Pune and Chennai benefit from robust infrastructure, strong underlying economic and employment growth and availability of talent pool. We have built a strong presence in these micro-markets. Mindspace Madhapur and Mindspace Airoli (East) are the largest business parks in Hyderabad and Mumbai Region respectively. We believe scale of these large assets built over period offer us a distinct competitive advantage. Mindspace REIT follows a focused strategy of regularly enhancing its portfolio through upgrade programmes to meet the changing needs of the millenials.
Top 3 assets contribute to 76.1% of total completed area
DIVERSIFIED AND HIGH QUALITY TENANT BASE WITH LONG-TERM RELATIONSHIPS
Our tenant base comprises a mix of domestic and foreign MNCs. No single tenant contributed over 6.7% of our rentals for March 2021. Further, our in-house facility management platform and regular tenant engagement activities enable us to maintain high tenant retention. Out of 11.1 msf of area leased since April 2017, 56.6% was leased to our existing tenants. On an average, our top 10 tenants have stayed with us for over 11 years. We closely engage with our tenants on their growth needs and other evolving requirements. As a result of this close association, over the years our tenants have grown multi-folds within our portfolio.
PROACTIVE CAPITAL MANAGEMENT
Our corporate credit rating by CRISIL Ratings and ICRA stands at CCR AAA/Stable and [ICRA]AAA (Stable) respectively. Our cost of debt has reduced significantly from 9.2% p.a. at the end of March 2020 to 7.1% at the end of March 2021. We have strategically moved towards creating a balance of fixed cost and variable cost debt, with c.30% of our total outstanding debt as on March 31, 2021 being fixed cost. Our net debt to market value remains low at 14.0%. This allows us enhanced financial flexibility to actively pursue value-accretive organic as well as inorganic opportunities.
Net debt to market value at March 31, 2021
Cost of debt at March 2021
STABLE CASH FLOWS WITH ROBUST GROWTH POTENTIAL
Long-term nature of our leases and significant tenant improvements result in a high visibility on future cash flows. The portfolio has inherent growth drivers in the form of potential re-leasing spread, on-campus developments and re-development opportunities across select assets. We also stand to benefit from the Right of First Offer (ROFO) agreement with KRC group which provides the option to acquire certain projects being developed or proposed to be developed.
EXPERIENCED MANAGEMENT TEAM
We continuously leverage the expertise of management team of the Manager, leading to a long-term value creation for our stakeholders. The average experience of management team in the real estate sector stands at c.15 years. Manager enjoys longstanding relationships with various stakeholders across the industry value chain.