India's Mindspace REIT to see boost from global captives, while IT drags, Ambit says

Mar 15, 202410:26 UTC

** Leasing demand from global captives to continue for India's Mindspace Business Parks REIT MINDSPACE.RR while that from IT likely to be sluggish for two years, says brokerage Ambit Capital

** MINS closed up 0.8%

** Adds occupancy in projects in non-Special Economic Zones (SEZ) has reached pre-Covid levels, SEZ vacancies near Mumbai expected to be leased in upto 2.5 years

** Co committed to secure tenants at earliest opportunity even at a discount leasing of 2 rupees-3 rupees per square feet - note

** Organic rev generation potential ranging between 6 bln rupees ($72.4 million) to 7 bln rupees expected in next 3-4 years - note

** Among real estate investment trusts, average analyst rating on MINS, rival Embassy Office Parks EEMBASSY.RR is "buy" while Brookfield India BBIRET.RR is "strong buy" - LSEG data

** YTD MINS up 5.4%, BROF gains 4.2% while EMBA jumps ~22%

($1 = 82.8655 Indian rupees)