The business park’s common central area is all set to serve as a convergence point for work and leisure.
Published Date – 30 January 2024, 03:44 PM
Hyderabad: Mindspace Madhapur, a prominent business park in the city, is undergoing extensive redevelopment, with the Experience Center leading the transformation. Spanning 0.13 million square feet, the center is currently progressing through foundational works and is anticipated to be completed by December 2025, according to the Mindspace REIT Q3 FY24 results report.
The business park’s common central area is all set to serve as a convergence point for work and leisure. It will feature efficiently designed workspaces and recreational amenities, including food courts, a gym, a spa, indoor games, and fine-dining restaurants.
The 1A-1B redevelopment project is in the foundational works stage, targeting completion in Q4 FY26, while the 7/8 redevelopment is undergoing excavation works, with an estimated completion in Q4 FY27. The report reveals that Mindspace Pocharam currently maintains a nil committed occupancy. As a strategic move, Mindspace has decided to divest the vacant Pocharam asset, securing the board’s consent.
Looking beyond Madhapur and Pocharam, Mindspace is eyeing further growth with the completion of the 1.8 million square feet Commerzone Raidurg project in the city. The first and second phases of this project are fully leased, with rents already in progress.
In Madhapur, co-working tenants have secured a substantial lease of 196 thousand square feet, while a technology tenant has added an additional 5 thousand square feet. The total leasable area in the city now stands at 14.1 million square feet, constituting 42.7 percent of the market, with the market value soaring to an impressive Rs 107 billion.
The report further highlights that Mindspace Madhapur remains a focal point for Mindspace’s developments, featuring an integrated business park covering 13.1 million square feet. The completed area stands at 9.6 million square feet, boasting an impressive committed occupancy rate of 94.8 per cent.
In Q3 FY24, Mindspace Madhapur generated revenue from operations totaling Rs 2,200 million, showcasing steady growth from the previous year. Net Operating Income (NOI) for the same period was Rs 1,832 million, contributing 40 percent to the total NOI. In comparison, Mindspace Pocharam reported revenue and NOI at Rs 20 million and Rs 12 million, respectively, constituting a smaller portion of the overall financials.
The report highlights that Madhapur remains the most sought-after market in Hyderabad, capturing a significant share of the city’s net absorption.
“Leasing activity in Madhapur has diversified, with a notable presence from IT/ITeS, BFSI, healthcare, flex, and telecom firms,” it stated. Rents in Madhapur have demonstrated a Compound Annual Growth Rate (CAGR) of approximately 4.5 percent between 2016 and 2023.
