Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Mindspace Business Parks REIT (NSE: MINDSPACE) Q4 2026 Earnings Call dated Apr. 29, 2026
Corporate Participants:
Shweta Shah — Manager- Corporate Finance and Investor Relations
Ramesh Nair — Chief Executive Officer and Managing Director
Preeti Chheda — Chief Financial Officer
Analysts:
Karan Khanna — Analyst
Puneet Gulati — Analyst
Unidentified Participant
Unidentified Participant
Mohit Agrawal — Analyst
Unidentified Participant
Yashas Gilganchi — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Mindspace Business Park’s REIT Earnings call for Q4FY26 financial results. Please note all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. With that I hand over the call to Mr. Shravan Kailasa from Mindspace Business Park Suite. Thank you and over to you.
Shweta Shah — Manager- Corporate Finance and Investor Relations
Good evening everyone and thank you for joining the earnings call for Portafone Branch Year 2026 of Mindspace Business Park Suite. At this point we would like to highlight that the management may make certain statements that may be forward looking in nature. Please be advised that our actual results may material may differ materially from these statements. We do not guarantee these statements or results and are not obliged to update them at any point of time. I would now like to welcome our CEO and MD Mr.
Ramesh Nair, CFO, Ms. Preeti Cheddar and Mr. Govindhan Kedala, head Corporate Finance who will take you through the business update and the financial performance during the quarter. We will then open the call to a round of Q and A. I’ll now hand over the call to Ramesh.
Ramesh Nair — Chief Executive Officer and Managing Director
Thank you Shan. Good evening everyone. Thank you for joining us today. Q4 was another strong quarter for us. We achieved a cross leasing of 3.5 million square ft. This momentum is truly reflected in our financials. NOI grew by 37.4% year on year to 742 crores for the quarter. Distribution for the quarter increased by 9.7% year on year. Please note that we had a one off tax refund in Q4 FY25 of 46 crores excluding this one off tax refund in Q4 last year. Distribution has grown 24.5% year on year and DPU has grown 17% year on year.
For the full year FY26 NOI has grown 29.2% year on year to 2,664 crores. Distributions increased by 15.6% year on year resulting in 9.7% TPU growth excluding the 46.6 crores one off tax refund in Q4 Last year. Distributions grew 19.8% year on year and DPU by 13.7%. Releasing spreads remain very healthy. 40.3% for the quarter and 31.8% for the full year. Rentals continue to trend upward particularly in Madhapur where we signed a transaction at 120 rupees per square feet that speaks of the mark to market potential for our overall Hyderabad portfolio.
We announced two acquisitions in Chennai in the well established PTR Road International Tech Park Chennai on Radial Road and Commerce zone Palikarnaya on the same road we are acquiring at a combined acquisition price of 5541 crores. Happy to report that we have received the unitholder not for the commonzone Palikarna acquisition. We are currently negotiating rentals at 85 per square foot per month for both these assets. To put the pricing in context, last year TVS had acquired land adjacent to ITP Chennai on PTR at 50 crores an acre.
Currently a US tech company is at an advanced due diligence stage to acquire 12 acres on the same road at nearly 80 crores per acre. We are a dominant player across every market we are presented and the Cementa position in Chennai Grade A office demand remains robust. The balance sheet is strong. That gives us the agility to move when the right opportunity presents itself. Our commitment remains unchanged. Consistent execution, consistent delivery and reinforcing performance. Now I’d like to share highlights from various IBC and other research reports.
The JLL report stated that India’s Office Market posted a quarterly record 21.5 million square feet of gross leasing in Q1 2026, up 10.2% year on year. GCCs expanded their footprint by 43% year on year to 10 million square feet, commanding 45% of the total leasing activity. Pan India vacancy dropped to a five year low of 14.7%. Net absorption reached a record 13.7 million square feet for the quarter. Citywise leasing status Mumbai was 20%, Hyderabad 17% and Pune 15%. Within GCCS, tech and BFSI dominated leasing activity followed by manufacturing.
Global headquartered firms accounted for 57% share of India’s office leasing landscape in Q1 2026. The CBRE report stated that domestic firms account for 43%, American companies 38%, companies from Europe 14% and APAC companies 5% of the leasing Fortune 500 companies leased 5 million square feet accounting for 21% of the share. 48% of GCC leasing is by Fortune 500 companies. Office stock expected to surpass 1 billion square feet in 2026 as per CBR. The Cushman and Wakefield report spoke about how Pan India stock weighted average rents crossed rupees 100 per square foot per month for the first time.
I’d like to also highlight an interesting report that I came across from CRE Matrix on the Nabi Mumbai market. It spoke about Nabi Mumbai having 32.7 million square feet of grade A stock hosting 430 unique IT companies and 12.3 million square feet under construction. GCCs form 25% of the grade A plus stock in Nabi. Mumbai buildings are 33% younger than the average age of buildings in Mumbai and 72% of the grade A stock is Green certified. Navi Mumbai also emerged as India’s leading data center hub which we all know it has 628 megawatt operational IT load and 3400 megawatt in the pipeline.
As you are aware we are the only REIT with data centers in our portfolio. I want to talk a little bit about the global headwinds on the Iran war. We are mindful of the macro environment, Oil driven inflation and rising input costs are real. Steel is up 2%, RMG and cement is up 8%, paints up 15%, tiles up 10%, PVC pipes are up 16%. We observed some slowdown in decision making on a few deals. Our long term leases and strong balance sheet make us well positioned to ride through this cycle. Rupee depreciation has made India definitely more attractive to GCCs in dollar terms.
Indian office rents have effectively held flat while our infrastructure and talent will have only strengthened. As a country, global headwinds and travel disruptions may delay some transaction in the near term. We had seen similar slowdowns in decision making during April last year after the Liberation Day tariffs and May last year when the India Pakistan war started. When the pent up demand releases we are positioned to capture it. A 200000 square feet GCC client in Hyderabad who we are negotiating with for 120 rupee rental had put their requirement in hold because of the war.
We managed to lease the same space at 130 to another GCC in 15 days. Let’s look at artificial intelligence and impact of what we have seen so far. I want to currently take a glass half full view on AI. Many of you have been asking us about AI and its impact on office. One interesting aspect was many of the magnificent seven companies have taken good amount of office space in India last year for AI related work. We have also seen many large IT services companies who gave up space during COVID due to work from home come back and take more space with us.
This could be because of flight to quality or they could be because no longer looking at owned campus own campus strategies. When we take a glass half full view we believe there’s a lot of evidence which supports it. PC, Internet Cloud computing. Each was supposed to reduce employment. None did. Spreadsheets eliminated bookkeeping clocks but created financial analysts. E commerce disrupted retail jobs, but built warehousing, logistics and delivery jobs. Technology changes how people work far more than it eliminates work.
Now let’s look at the data. The AI narrative has been running for the last three years. In that period, office demand has grown 18, 16, 15% year on year and this quarter 7%. GCC’s technology consulting, BFSI clients the most the biggest adopters of AI are all hiring at scale. There is no evidence of mass vacancy increases. In fact, the very AI companies blamed for killing offices are themselves taking new office spaces in some parts of the country. These are high value occupiers who seek grade A best quality spaces.
AI is also creating entirely new roles. ML engineers, prompt specialists, AI product managers, data governance teams, cybersecurity experts. The logic is quite straightforward. AI increases productivity, productivity drives growth of companies. Growth needs talent and talent needs space. So job displacement will obviously happen in certain functions. But job creation and role evolution will also happen alongside it. I feel the workforce will become augmented, not replaced. India has a lot of structural advantages here.
A young tech trained workforce, strong AI hiring growth and growing AI skills density. That makes India more attractive, not less attractive. There’s also qualitative shift. When AI handles the repetitive task, human work becomes more collaborative, more strategic, more judgment driven. All requiring office space. In regulated industries like healthcare, legal, pharma, human oversight is not optional. Client facing work still matters. R D cannot function remotely. Breakthrough ideas will come from unplanned hallway conversations.
The future is not no office, it is better office. I believe AI will accelerate the flight to quality. Companies will seek upgraded spaces, stronger amenities, better sustainability credentials. I also believe that offices are shifting from rows of desks to collaboration hubs. Workplaces now express corporate identity. Attractive spaces remain key to winning talent. And for a portfolio like us, which is greedy, low rise, business park focused, sustainability led, this shift works firmly in our favor.
Now let’s look at the REIT performance update. Let’s look at some of the operating and growth highlights. A quick update on the annual performance for the 12 months as we close FY26. Cross leasing for the year was 7.1 mil. 7.1 million square feet, the second highest since listing. Last year we had done 7.6 million square feet. More importantly, committed occupancy reached 95.7%, the highest we have ever reported since listing up from 93% in FY25. We also delivered healthy NOI of 2664 crores, our highest year on year growth since listing up 29.2% year on year.
This reflects the compounding of higher occupancy, stronger ends and disciplined operations. Distribution stood at 1516 crores up 15.6% year on year. DPU this year grew 9.7% year on year and 13.7% excluding the one off tax refund which I spoke about. Our in place rents have moved north of 80 rupees from 71 rupees a year ago. Now for a Q4FY26 performance highlights Cross leasing hit 3.5 million square feet, the second highest quarter since listing up from 2.8 million square feet in Q4FY25. Every leasing metric is at or near a record.
NOI stood at 742 crores, our highest year on year growth rate since listing at 37.4% year on year we delivered 431 crores in distributions up 9.7% year on year. We set a new record with the highest ever quarterly DPU at 6.64 per unit. DPU grew 3.1% year on year, DPU 17% excluded 1 off tax refund. NAV closed at 527 per unit up 9% from 483.7 as of September 25th. Our unitholders are seeing both income and capital appreciation working together. Let’s look at some of the other business highlights. We have released 2 million square feet across B8 and B18 in Hyderabad.
We signed 1.5 million square feet in B8 and 0.53 million square feet in B18 during the quarter pre leased 0.8 million square feet to a Healthcare GCC at 110 rupees per square foot. We pre leased another 0.7 million square feet to Indian MNC who will build, operate transfer the promises to a BFSI GCC at 121 rupees per square foot. Rental traction is only building from here. Mindspace Madhapur committed occupancy touched 99% the highest ever. Mindspace Iron west reached nearly 99% also the highest ever.
Some of you may remember we used to be around two years back. 72% the largest essence in our assets in our portfolio are essentially full. JV has increased to 471600 crores and NAV is now 527 per unit. This shows the steady growth and the strong quality of the portfolio over time. Currently dry runs are underway at the Pearl Club at Mindspace Madhapur and we are scheduled to go live in this quarter which will be India’s best club under construction. Pipeline today stands at 5.4 million square feet, well on track out of which please don’t forget that 4.5 million square feet out of this 5.4 million square feet is already pre length.
Let’s look at portfolio expansion. Portfolio growth remains a strategic priority and we have delivered on it. Over the past year we grew our completed portfolio by over 2 million square feet. This came largely through inorganic growth. We acquired three prime CBD assets in Mumbai and Pune. We also brought in 0.8 million square feet of external third party asset the square financial district just previously called Q City. And we consolidated 50,000 square feet within our existing parks. As you’re aware, we have recently announced another two further acquisitions in Chennai which is underway and expected to close over the next 10 days.
We have built a strong platform, operate in clear markets and have an active pipeline. We will continue to pursue high quality assets and move decisively when the right opportunities present themselves. Let’s look at the REIT development update at Mindspace Aeroly East Committed occupancy has risen to 83% following the success of Mindspace Fusion, our FNB hub. We’re exploring an expansion of FNB offerings within the business park. Upgrade work is buildings B1, 9, 10, 11, 12 has made much progress and will conclude in the next couple of months.
The lobbies today look a lot more sophisticated, functional and suited to a best in class park. Client. Feedback has also shaped our infrastructure plans. We are building covered walkways across the park to create more comfortable connected experience in Mindspace I only west when the demarcation was announced, permitted Occupancy stood at 72%. Last quarter it was 96%. This quarter it’s 99%, a clear indication of how well the leasing team has performed across the 4.4 5.4 million park. Total vacancy is just down to 72,000 square feet.
This progress strengthens our confidence in Navi Mumbai’s growth and our long term plan for the micro market. Rentals have also followed. Recent deals in Aeroli have been signed at 74 rupees per square foot, a clear signal of where the micro market is headed. As you are aware, Mindspace is the only Indian REIT with a data center portfolio. Two data centers are already operational, three more are in various stages of development. Once complete, our data center portfolio will span approximately 1.7 million square feet.
Our confidence in Navi Mumbai’s long term trajectory has never been higher. In Mindspace Madhapur we have 10 million square feet with 99 occupancy. Just over 100,000 square feet of vacancy remaining. Madhapur is for all practice all practical purposes. Full rentals have demonstrated marked marked improvement. A large American bank in GCC has taken up space at 125. A large American healthcare GCC has taken up space at 110. We are also redeveloping age assets to keep the park modern, competitive and tenant ready for the next decade.
At Commerce Zone Nirvana we are entering an exciting phase. A comprehensive phase wide a comprehensive phase. Word upgrade is underway. The entrance refurbishment has already begun. Building B1 has a new food court and will be completed over the next few weeks. Lobby and kiosk extension, facade upgrades, terrace amenities and a revitalized central garden are all in the pipeline. Ascent, the new building we acquired in Worley. When we acquired Ascent, worldly Occupancy stood at 86%. Today it’s at 97% with only 15,000 square feet vacant.
Average rents in Worley stand at 306 and we have just signed a fresh dealer 345. The rental trajectory again here is firmly upward. Let’s look at what what we are doing on the customer centricity side. We also weave in sustainability into each of our offerings. The nearly 50% of electricity today currently sourced from green energy. Our H23 program offering the true hospitality led experience has also accelerated with 23 focused items to bring a more premium hospitality led feel across our parks.
Another area of focus is our infrastructure and amenity upgrades. Our life cycle assessment study has guided our MEP upgrades and we will be investing significant amounts of money in upgrading our mep. This year we divided our budget between front of house and back of house. Front of house operations will have a direct positive impact on client satisfaction and back of house ensures uptime, compliance, safety and efficiency. Capex is prioritized for asset modernization to drive tenant stickiness and sustainable rental growth.
The second edition of Mindspace Eco Run through 8200 participants across Aeroli and Madhapur, cementing our position as a community first Business Park Operator Every decision we make starts with one question. What do our tenants need? Feedback from surveys, audits, daily engagement feeds directly into how we run and improve our parks. The playbook is simple. Build, lease, upgrade, repeat simple and compounding. Modernized assets drive stickiness, stickiness drive renewals and renewals drive rental growth.
We are not just building parks, we are building ecosystems where businesses grow and people belong. On the valuation front, GME grows to 4. 47,600 crores NAV rises to 527 per unit. In Madhapur, leases were being signed at 85 to 90 just a year ago. This quarter, like I mentioned, we signed at 121 per sq ft. In Nabi Mumbai, rentals have moved from 65 to 70 with the highest transaction rate 81 per sq ft. In AY west, rents and occupancy are more meaningfully leading to value creation on ESG credentials.
Our ESG credentials are not just strong, they’re globally recognized. Very happy to report that Mindspace REIT ranks number three globally in GRISP, which is Num, which is the number one global rank in environmental performance at 73 out of 100. We are India’s highest rated rate. We are also the only Indian organization in our sector to achieve industry distinction in the S P Global Sustainability Yearbook 2026. We have been recognized at the Asset AAA Sustainable Finance Awards 2026 in Hong Kong for leadership in integrating sustainability into our financial framework.
We also launched a Green Mind Ideathon. This initiative puts sustainability ideas in the hands of people who matter most, our tenants and employees. Our ESG commitments again extend beyond our parks to the communities around them. In partnership with NAVI Mumbai Municipal Corporation and NGO Project Mumbai, our plastic and ebay recyclerton is making tangible progress. FY26 has been a landmark year and the numbers speak for themselves. In conclusion, record committed occupancy of 95.7%, NOI growth of 29.2% year on year, the highest since listing and distribution growth of nearly 16% 20% excluding the on off of last year.
Here are some broad annual performance metrics. In the start of FY26 committed occupancy stood at 93%. We closed the year at 95.7%. Vacancy at the start of the year was 2 million square feet. After all the acquisitions is now stands at 1.35 million square feet in place, rents move from 71 to 80 rupees per square foot, GAV grew from 36,647 crores to 47,635 crores, NAV grew from 432 to 527 per unit and our portfolio is expanded from 37.1 million square feet to 39.3 million square feet. Since listing we expanded our portfolio by approximately 9.1 million square feet through accruive acquisitions valued at 10,600 crores including the announcements of ITPC and Commonz Pal in Chennai.
Recently our unit price has appreciated 63%. Since IPO, a unitholder count has crossed 1 lakh. When we listed it was 8,000 unit holders. The investor base is broadening and deepening. GCC is now represent 52% of our tenant base. Hyderabad, the largest market has emerged as India’s most sought after GCC destination. In FY26 we have leased 3.4 million square feet to IT services. In spite of the slowdown of IT services, geopolitical risks and commodity costs inflation are real but they are also manageable.
Our portfolio is domestically anchored, our leases are long and at tenant base is deep. Our LTV today stands at 24.3%. Cost of debt at 7.41% amongst the lowest in several quarters and now comfortably below our cap rates. Regulatory tailwinds on equity classification and bank lending to REITs will further deepen our capital access over time. Beyond FY26, our growth agenda is well defined. Data centers in aeroli west are progressing. 5A 5B redevelopment in Madhapur will commence soon. The Pearl Club and Ascent Residences go live this year and our acquisition pipeline remains active across core markets.
Each of these are a distinct value driver and all are moving in parallel. Stepping back, FY26 delivered record performances, demonstrated resilience through cycles and validated every pillar of our growth strategy. And as we enter FY27 we enter at the strongest position. Since listing our proposition remains unchanged and strengthened. High quality occupiers, disciplined growth, sustainability, leadership, stable growing returns. We continue to maximize value and build love workspaces and portfolios.
Investors Trust. Thank you for your continued confidence in Mindspace reit. I will now hand it over to Preeti for further financial updates of the quarter.
Preeti Chheda — Chief Financial Officer
Thank you Ramesh. Good evening everyone. I’m pleased to present the financial results for the quarter and the financial year ended 31st March 2026. We delivered a quarter of very robust operating and financial performance. Ramesh has already spoken about the operating performance on the financial side. RNY for Q4FY26 grew a healthy 37% year on year to INR 740 crore and for full financial year by 29% to INR 2660 crore. Revenue from operations for Q4.26 increased by 31% by OI to INR 888 crore. While full year revenue grew 26% to INR 3200 crore.
Excluding the one off tax refund which Ramesh alluded to, our distribution growth was 19.8% for FY26 and about 25% for Q4 FY26 in aggregate for FY26 we distributed around 24 rupees per unit to the unit holders. The gross asset value of a portfolio increased about 16% from September 2025 to INR 1447,600 crore. The Chennai acquisitions will add another 4200 crore to the GAV. NAV of our portfolio also grew by a healthy 9% from 484 per unit at September 25 to 527 per unit at March 26. This strong growth was driven mainly on account of one the rental increases across our micro markets, particularly Madhapur, Hyderabad and Nabi Mumbai.
2 the rising occupancy across our portfolio and the cap rate compression of about 25 bips across some of our projects that the value has considered. Our loan to value at March 2026 was about 24.3%. The two acquisitions that we did in Chennai would take this LTV to 28.7%. Our cost of debt remained largely flat sequentially at 7.4% papf, which was lower by almost 75 bips by OI. We expect the financing cost to remain around these levels or marginally rise because of the geopolitical challenges on the operational front.
As Ramesh has already spoken of, rising occupancy at Aeroli has been very encouraging. Rentals across our markets have been moving up. In addition, the Embedded Development pipeline and the third party acquisition as we may undertake will all aid the growth of NOI and DPU going forward. With this I hand over the call to the operator to open the floor for questions. Thank you.
Questions and Answers:
Operator
Thank you so much. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may click on the raise and icon from the participants tab on your screen. We’ll wait for a few minutes until the question queue assembles. We allow our first member Mr. Karan Khanna of Ambit Capital, please go ahead with your question.
Karan Khanna
Yeah hi. Thanks team. So just a couple of questions from my side ramesh. Firstly, while GCC’s data centers and to some extent the Flex workspaces were key demand drivers in FY26 for the commercial RE markets at large and for Mindspace assets, what are likely to be the major demand driver categories one should monitor going into FY27, will it largely remain the same as FY26 or are there any new demand drivers that you would want to point out?
Ramesh Nair
We will look at if we can do more data center deals within our portfolio for sure given that we have that 100 acres and there are any good E development opportunities, we’ll definitely look at data centers. Today our portfolio, like I mentioned, GCC is around 52%, foreign MNC is around 20% and Indian domestics the balance 28%. And if you look at our top clients, it’s a good mix of R D, energy, IT services, GCC banking, some flex players, Indian bfsi, Indian Large domestic. So it’s global telecom, Global energy.
Again I was just going through the list of our top 10, 15 clients global banking. So I think this will definitely continue going forward. Our flex today is 8.4% of our portfolio. And within that 8.4% portfolio, most of the space has actually been done by enterprise clients which includes people like IBM, Prudential nationwide, Telstra, Ethical, Fujitsu, L’, Oreal, MasterCard. We obviously look at who the enterprise clients of these flex players are. And I was looking at our top five, top six exposures to again flex players which is again we deal with the top six players.
Four of them are listed of them are planning to list. So that’s a list of six players. So I see this continuing. I don’t see any big change in the tenancy profile although when I Look at the RFPs, Hyderabad seems to be having the most number of RFPs in the country. Massive RFPs. Like there’s a 2.5 million square feet RFP from a global bank, there’s a 1.2 million square feet RFP from a Global Tech player, there’s a 1.2million square feet RFP from a bank, another bank, 800,000 square feet pharma, 500,000 big four 500,000 pharma, 200,000 and the farmer.
So that’s like massive. So much RFPS happening and we’re closely tracking all that. So it’s a, it’s a mix karat and I don’t see that trend changing.
Karan Khanna
And just on the portfolio occupancies, given that you’re already at close to 95, what would be the realistic peak occupancy that you expect the portfolio to reach? And with 1.8 and 1.9 million square feet of, you know, expiries in FY27 and 28, could you share early talks on you know, releasing and releasing spreads you are likely expecting across these assets and a follow up given that. Yeah, yeah, please go Ramesh.
Ramesh Nair
So from a releasing spread point of view, we were looking at the portfolio still, it’s still 20, 20% potential MTM we have in our portfolio. But given the way rentals have been behaving in some of these markets, especially Hyderabad. I definitely see that going up. Out of the expiries, 73% of the 3.6 million square feet of expiries we had, we have already kind of released it. And one good news is all the new deals which we did, 71% of it came from existing tenants in our India portfolio. Which means that tenants are happy with whatever we are doing.
Our asset management teams are doing a good job. So that was again an interesting data point. So FY27 expiries are lesser compared to this year. We had the FY26. The expiries were 3.6 million. FY27. The numbers show 1.8 million square feet. The key focus obviously is going to be making sure the new parks which we acquired in Chennai, we managed to fill it up and reducing vacancy in Aeroly East.
Karan Khanna
And then last question for you Preeti. On the board approval to raise up to 157 billion. When you say upper cap of 33%, what does that number translate to and how much headroom does that leave you versus the current net debt of 115 billion.
Preeti Chheda
So as such, you know, from a cap perspective we can obviously board keeps approving from time to time as and when we find opportunities and we want to invest. And if that requires additional debt headroom, then we go to the board and approve. So I, I don’t think that’s a challenge. And as we have always said we would keep our LTV around 3035 which is our stated position. We are about 28.7 now with these two acquisitions. So that leaves us enough headroom for growth. As I said again, 35, 30, 35 is what we’ll be comfortable with.
So I think for now we have enough headroom. But as I said in the last call, also if there are opportunities which require us to raise capital, we will do that at an appropriate time.
Karan Khanna
This is helpful. Thank you and all the best.
Operator
Thank you so much. We’ll move to our next speaker. We have Puneet Gulati of hsbc. Puneet, please unmute your microphone.
Puneet Gulati
Yeah. Thank you so much and congratulations on great performance. My first question is with respect to the development capex which you outlined, can you sort of quantify how much do you intend to spend on upgrades and how much do you intend to spend on new area addition during the current year?
Ramesh Nair
This year our capex is 1434 crores for base build and upgrades is 203 crores. So we have a balance capex of 4075 crores which is for finishing our B1 B8 the three data centers B15, B17, B18. So all this put together we have another balance capex of 4075 crores.
Puneet Gulati
Okay. And versus the 1600 crore that you spent in that you plan to spend in 27 what was the spend in 26?
Ramesh Nair
26 I think was thousand plus 200 I think 1200 crores was the capex.
Puneet Gulati
Okay. So
Ramesh Nair
We are increasing that overall capex.
Puneet Gulati
Right? Right. Interested. Secondly, if you can also talk about you know the gap between the mind space ioli east committed occupancy versus actual for three quarters. It hasn’t picked up. Should we expect the gap to narrow anytime soon or do you think there is more fit out finish that still needs to be done there?
Ramesh Nair
So I only occupancy the gap between committed occupancy. What we are seeing is it’s only because of the timing difference between loi to lease deed.
Operator
Yeah.
Ramesh Nair
I mean a lot of deals which we have done in March so that’s where the difference is. The difference is hardly anything. For Irony West I think the difference is only around 2% and for Iron East I think it’s around 9%. All this will get done in the next quarter or so and this will move towards signing and we’ll move towards committed occupancy
Puneet Gulati
Next quarter. You said this gap
Ramesh Nair
Next few months.
Puneet Gulati
Next few months. And and lastly if you can also talk about your you know acquisition strategy. Preeti talked about you know increasing her or comfortable with 35% LTV from current 28.7. Would you like to fund your acquisitions more with debt now versus equity or or is or is it likely to be similar to what you’ve done in the past
Ramesh Nair
Before talks on the debt equity piece. We stay committed to acquiring more assets. We’ve already done 9 million square feet like I said 10,600 crores. So a lot of deals across the country are suddenly coming up after people have seen our recent acquisitions and obviously it should be accretive for everybody. I mean looking at multiple strategies that you’ve seen in the during our acquisitions that we have done core, core plus value add opportunistic all types of acquisitions we have done. Preeti want to talk with the dead equities.
So
Preeti Chheda
Puneet sales all the sponsor acquisitions that are likely to come as we’ve seen in the past, I expect them to be by way of swap. So that effectively would not require us to do any kind of debt raise. Third party acquisitions mostly all going to be cash outs by those sellers. So those we will fund out of debt. But as I said, if we are getting closer to 35, which we’ve been saying is our comfort level then we will at an appropriate time raise equity. But for sponsors, as I said, we don’t really need and for third party acquisitions outside the sponsor group, we will look at it at an appropriate time.
Whether debt is good enough for us to do those acquisitions. And if we feel we need to raise equity then at that point in time we will look at it.
Puneet Gulati
And in the next one year pipeline that you may have, is it more sponsors or more third party?
Ramesh Nair
Early to tell right now, Puneet, we’ve just done two big acquisitions. With this acquisitions we go to from 24 and a half percent, we go to 29%.
Puneet Gulati
I
Ramesh Nair
Think it will again be a mix of both sponsor and third party.
Puneet Gulati
Okay, thank you so much. Just lastly on my side, if you have any thoughts on the data center strategy, you already lease out some space. Is there a thought to start doing a bit more MEP sort of work for data center or would you largely limit yourself to core and shell?
Ramesh Nair
We will continue with our strategy. What we have been doing so far. We are real estate experts and we are looking at one data center opportunity within our park. And hopefully we’ll be able to announce something good and big from a data center point of view in the coming few months.
Puneet Gulati
Great. That’s all from my sir. Thank you so much and all the best.
Operator
Thank you. We’ll take our next question from Deep Shah of 361 Capital. Deep, please unmute your microphone. Yes.
Unidentified Participant
Yeah. Hi. Thanks for the opportunity. So tabular question from my side first is so next year about 3.2 million square feet thumbs live in Madhopur. So out of find a half that we have under construction, more than half will be ready. I guess we also have new construction in in Chennai. So this spread between NOA and NDC have growth. Should we expect that to moderate starting 28 or. Or even in FY28 we expect NOI note will be higher than our NDC road. So. So that is my first question. And then my second question is on debt repayment.
If I look at our debt schedule I find about 85% of debt which is up for repayment next year is at two points of 7.7 or higher. In fact most of it is 7.9 and 8. So would it be a fair assumption that our debt cost can actually still further remain in this range or even go down slightly? Would that be a fair assumption? Yeah, that’s, that’s from my side. Thank you.
Ramesh Nair
I’ll preview handle the debt question but on the rent commencement dates. So B, B1 is 100 lease that’s 15 lakh square feet and B8 which is your 17 lakh square feet in that 15 lakh square feet is already absorbed. The 2 lakh square feet will get done this month in the next 15 to 30 days that will also get done. In terms of RCDs of some of this we have a large client’s RCD starting in December 27th. We have something starting in September 28th. We have something starting in March 28th something starting in February 29th.
So it’s spread out where these large clients ask for large significant rent free periods also. And so it’s a mix. So rentals will most of these deals the actual rentals will start kicking in next financial year and from that time onwards things will start going up. So just a couple of points I want to talk here is in Hyderabad our rental revenues have gone up in the last financial year by close to 110 crores just because we managed to lease most of the vacant space and also because rentals have gone up again.
In Gigaplex our rentals have gone up 80 crores. In Hirvada because we managed to leave some of these spaces rentals have gone up 40 crores. So we’re looking at every 20, 30 50,000 square feet which is vacant to increase our cash inflow. Salad PT Talk over the debt part.
Preeti Chheda
Yeah, so on the financing cost as I said we are today at 7.4. We have about 2700 draw of refinancing in FY27 I expect you know this is our discussions with lenders and debt investors. We expect that, that the funding which we have for balance of the year to maybe be around these levels because we really don’t know how long it will take for these interest rates to actually stabilize. But keeping that in mind I think overall for FY27 either we will remain at these levels. I don’t see us actually going below this and if at all it could be marginal 510 pips increase.
But I really am not seeing reduction from here either we’ll remain around the same or maybe marginal increase.
Unidentified Participant
Sure, sure this is useful. If I can just squeeze in one more apologies. So when we started this year when I look at our FY25 presentation Madhopur, about 0.4 million expiries were expected. If you could help us understand what were the actual expiries. I’ll just say the context. The context is that over the next three years less than 10% of space comes for our comes for expiry in Madhopur. And that is of course our best asset in terms of the MTM opportunities that, that we have. So if it would maybe if you could give two, three years data that would be very useful or even if FY25 data.
Is there a case to be made that generally actual expiries are, are higher than what is is expected? Is that a, is that something you’ve seen historically or. That would be a very optimistic assumption.
Ramesh Nair
Actually, you’re right deep when we estimate these numbers in terms of expiries or exits. This is based on our client communication today. Given that most clients they have six months to give notice, a lot of guys who may come back. And so this year, when the year started, we were talking about 2 1/2 million square feet of expiries. The year ended at 3.6 million square enquiries. Right now given where the market is today, we are not complaining of tenants exiting because it’s giving us massive upside.
Otherwise we won’t be achieving 40% mark to market what we did this quarter. But tough to kind of put a exact number now given the six months notice periods which clients have.
Unidentified Participant
Yeah, at this stage we typically only know based on the contracts. What is the, what are the expiries that are upcoming. There also happens sometimes that a client could prep on. Given the rentals are moving up, they would like to lock in rent. Sometimes they do an early renewals as well. So even though their expiry is let’s say in the next year, but they would like to lock in, they prepone their renewals and they do a leasing much prior so that also kind of then the expiry is moved forward in a way.
Unidentified Participant
Right. This is, this is useful. Thanks guys and all the best.
Unidentified Participant
Thanks Dave.
Operator
Thank you. We’ll take a next question from Mohit Agarwal of iifl. Mohit, please unmute your microphone. Yes, please go ahead.
Mohit Agrawal
Yeah. Good evening everyone and thanks for the opportunity. My first question is the outlook on the rental increase in Hyderabad. Like last year, we’ve seen almost market rentals going up by 20, 25%. You’ve been signing deals at 120 bucks now. How do you think the trajectory will be for this year? Do you expect a similar increase? And if you could talk about, you spoke about RFPs being very strong. If you could also talk about a little bit of what kind of supply apart from us is coming in the, you know, in the micro market.
That’ll be great. So just trying to understand where could probably the rentals be in the next 12 years?
Ramesh Nair
Definitely in the next one year we see rentals going up not by 25% what we saw last year because obviously companies will have their budget restrictions also. But Hyderabad market, wish we had more space to give. Everything is gone. Like I said, B18 is gone, B1 is gone, V8 is gone. So we don’t have space. And maybe we could look at some of the sponsor acquisitions which again will come quite, quite later. So it’s a good place to be in. Very surprisingly, we were talking about redevelopment in Hyderabad and which is going to be ready after we get approvals, after we design, after we complete the building, all that.
And there are already two inquiries which have come up for something which may come up four years down the line. So the market is that hot. I’m sure some of you have read that 46% of the GCCs who came to India last year went to Hyderabad versus 30 to 33% who went to Bangalore. So we’ve been big beneficiaries of of that.
Mohit Agrawal
Okay. And the in place rentals continue to grow by about high single digits. Right. Considering that you have low expiries in the next couple of years, is that a fair assumption to make?
Ramesh Nair
In place rentals are obviously going up, but it all depends on when some clients will leave. And
Unidentified Participant
Yeah, our ker on the in place rents since our listing has been about 7%. Lot of 7% but. And expiries these days are giving us higher releasing spreads compared to earlier years, primarily driven by Hyderabad. We used to achieve about 25 to 25, 20 to 25% of releasing spreads in the last couple of quarters we’ve done 30%. This quarter we’ve done 40%. So that’s moving our pace of increase rent growth also higher.
Mohit Agrawal
Sure. And, and Preeti, just on, you know the. This year we’ve done nearly 10 DPU growth. You know, if you could give some comments. I understand you don’t give a guidance, but if you could give some comments around what kind of DPU growth trajectory should we broadly expect for FY27? Should it be similar? Better, because there’s be. Obviously the NOI will see a lot of jump because of the acquisitions and all, but how do you see that translating into deep? And this is also considering that your interest cost, you are expecting to be stable.
Right. So how do you think about the DPU next year.
Preeti Chheda
Right. So you partly answered my question that we don’t give guidance. So I won’t be able to give you the exact number. But I can tell you NOI growth, as Ramesh has already said, there are multiple factors which are going to drive NOI growth for next year. So when our growth is going to remain healthy, interest cost, as I said will remain stable at these levels. So given that, all I can say is that you should continue to see a healthy growth in dpo. I will stop at that.
Mohit Agrawal
Okay. Okay, I tried. So thanks a lot.
Preeti Chheda
Thank you.
Mohit Agrawal
Yeah, thank you.
Ramesh Nair
See one of the things which, which Mohit used to some of them, some of the analysts used to ask us was slow distribution growth. And over the last four quarters we’ve given 18, 16, 20, 10% growth. So I think all double digits. That used to be a concern. Now not too many people ask us about distribution growth.
Operator
Yes Mohit, please go ahead.
Mohit Agrawal
No, I’m done. Thank you.
Operator
Thank you. We’ll next take Parve Kazi of Nuama Group. Please unmute your microphone. Yeah, please go ahead. Please go ahead with your question.
Unidentified Participant
Hello. Yes. So congratulations for a great set of numbers. Two questions from my side. Apart from the recently acquired assets in Chennai, we largely have a space left only maybe in Aeroly east and the financial district. So how do we see leasing in these two assets? And I mean let’s say here down the line, what kind of occupancy can we have in these assets? That’s the first question. And second, in terms of GCC contribution to our leasing for FY26, fair to say roughly half of our space would have been leased to GCC.
Ramesh Nair
That’s the number. Now the overall number is at 52 for this quarter. GCC breakup is 54%. So we have, we maintain that percentage. But based on Chennai leasing we have between both the parks we have 14 lakh square feet of completed space with with occupancy certificate. The focus over the next 12 months will be to lease this 14 lakh square feet. I really focus continues. We hear that there’s not too much of competing supply also in Aeroli. So I think we have around 9 lakh square feet in. 8 to 9 lakh square feet in I really east.
Now the objective will be to kind of bring it down at least to a 5 lakh square feet kind of a number and hopefully we should be able to take this 95.7 occupancy which we have to maybe early 97 to mid 97 by end of this. This Year that’s going to be the focus. And like I mentioned in my speech, when we started the year we had 20 lakh square feet. Today we have 13 lakh square feet or vacant space.
Unidentified Participant
Also a related question now with I mean overall Madhapur as a market doesn’t really have that much space either for you or for others. So your thoughts on the financial district market and the asset that we have there?
Ramesh Nair
Definitely we’ve been seeing a lot of demand for financial district just because there’s no space available and many companies are also cost conscious. So that’s why our rentals in financial district when we picked up was around 55, 56 and today already we are doing deals at around 62 which will only go up. We have some alternate usage ideas also within the QCD park which we acquired and over the next few months you’ll be able to hear some good deals in that park at better rentals.
Unidentified Participant
Thank you. And all the best for future.
Ramesh Nair
Thank you Parveesh.
Operator
Thank you. We have Yashas Gilganji of Bob Capital Markets Ltd. Yashas, please go ahead with your question. Yes,
Yashas Gilganchi
Good evening team. Thank you for taking my questions. Having expanded your presence in Chennai significantly, please shed some light on the opportunity you see in the city. More specifically, how do you expect in place rents to trend over say the next two, three years? What is the growth that you expect?
Ramesh Nair
So yes, our strategy was very simple. We saw that the market with the lowest vacancy India vacancy numbers are 15%. Chennai was 7%. When we looked at institutional supply on PTR road there was no institutional, hardly any institutional supply. We looked at OMR1 which is a better market, higher rentals, absolutely no institutional supply coming for the next two years. So these were the reasons why we picked up the Chennai assets where we can control supply. Now we own the supply in that the two best micro markets if you combine Omar 1 and BTR between these two markets we kind of control the supply.
So the strategy itself was Chennai domination. And this is, it’ll be nice if you could check out some of the pictures of this asset. This is truly institutional, kind of a trophy kind of ID park asset in the country has the best low carbon which anybody has ever built and it’s a new asset so and has the advantages of Omar PTR and GST road all three widest road in Chennai Metro is coming up over the next one and a half, two. Two years and the nearest competing supply like DLF today I heard from the IPCs they’re quoting 150 Sato has a great project again I hear from the IPC’s they’re quoting 130 we have started already doing deals at 85 so I’m sure that’ll go go up and so multiple advantages, airport hotels close to the airport, residential catchments, lots of a nice small Phoenix is not very far off.
Good senior executive housing, scalability potential. Now that we have two parks clients can scale up. You’re already getting an inquiry from someone who said that I’ll take in this park but give me scalability in the next park. Large floor plates, the best size floor plates in the city and 98% of CapitaLand is actually multinational clients all GCCs. So low rise given that it’s airport zone it’s still low rise over specced asset. And these kind of assets have eventual potential to become front office.
What we saw in today you asked the ipcs which is the CBD in Hyderabad they would say Madhapur which has already become a front office destination. This is the kind of asset which has potential for a front office. So chennai market, approximately 6 million square feet net absorption market and we should be able to get some share like like I said the focus is 14 lakh square feet of vacant space which we need to lease in both these buildings which we hope to lease in the next 12 months.
Yashas Gilganchi
Understood. And I understand that you expect a marginal increase in your cost of debt over the over coming year but as you refinance expiring debt over over the next few years do you expect to lock in a bigger portion of your outstanding debt at fixed rates or. I’m just trying to understand if what the strategy is to ensure a stable cost of debt.
Preeti Chheda
So as you see over the last couple of years we’ve actually been moving a lot of our variable cost debt which is essentially at the SPV level to fix cost at the rate level. We’ve already touched close to 70% in form of fixed. I think 70, 75 is where we want to be in on the fixed side we would want to continue with some LRDs at the SPV level also. So I would say since almost 75% is going to be fixed then to that extent it provides a lot of stability. And you know I’d also mentioned in the last earnings call that we are now trying to do some long term bonds so that you know we can have better I would say stability on the interest rates also.
Of course these last two months have not been the right time but as we move ahead we would like to actually lock ourselves for long term debt, so that in the interest rate, stability is much better than what it is today.
Yashas Gilganchi
Got it. Thank you very much.
Operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may click on the raise and icon from the participants tab. We’ll wait for a few moments. As there are no further questions. On behalf of Mindspace Business Sparks reit, that concludes today’s conference call. Thank you all for joining us. And you can now click on the leave icon to exit the meeting. Thank you all for your participation.