From NOI to LTV: Mindspace REIT Prepares Big Financial Tune-Up

Image Source: Mindspace REIT

Mindspace Business Park REIT will convene its Executive Committee on October 17, 2025, to discuss raising funds via non-convertible debt securities or commercial papers and amending terms of its NCD Series 4 worth Rs 500 crore. The changes target financial metrics like Net Total Debt to NOI and Loan to Value ratio.

Mindspace Business Park REIT has announced that its Executive Committee of the Board of Directors will meet on Friday, October 17, 2025, to decide on significant financial measures. The agenda includes raising fresh capital through debt instruments and revising key terms of an existing debenture issue in line with regulatory requirements.

The proposed fundraising could be executed via issuance of non-convertible debt securities (NCDs) or commercial papers. This move would bolster liquidity for operational or expansion needs amid evolving real estate market dynamics.

Additionally, amendments to the Debenture Trust Deed are tabled for approval, specifically adjusting the Net Total Debt to Net Operating Income (NOI) ratio and the Loan to Value (LTV) ratio for the REIT’s Rs 500 crore NCD Series 4. Issued on July 28, 2022, these senior, listed, secured debentures carry a face value of Rs 10 lakh each and mature on July 27, 2027.

Such amendments, subject to necessary approvals under Regulation 59 of the SEBI Listing Regulations, are expected to align capital structure parameters with current performance metrics and potentially enhance flexibility in managing debt obligations.

Key highlights

Board’s Executive Committee meeting scheduled for October 17, 2025.
Proposed fundraising via issuance of NCDs and/or commercial papers.
Planned revisions to Debenture Trust Deed’s Net Total Debt to NOI and LTV ratios.
Changes impact Rs 500 crore NCD Series 4 issued in July 2022, maturing July 2027.
Amendments subject to compliance with SEBI Listing Regulations.

Market watchers will view this meeting as a signal of Mindspace REIT’s intent to strengthen its balance sheet while recalibrating debt terms to maintain investor confidence. In an environment where REITs face pressure from interest rate fluctuations and real estate demand cycles, such proactive measures could aid in sustaining returns and operational resilience.

Sources: Mindspace Business Park REIT announcement, SEBI Listing Regulations.

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