Rationale

 The rating action for Gigaplex Estate Private Limited (GEPL) favourably factors in the sustained improvement in the occupancy levels leading to healthy debt protection metrics. The committed occupancy levels improved to 92% as of June 2025 (87% as of December 2024), supported by healthy demand in the Airoli micro market. The occupancy, backed by a healthy leasing pipeline, is expected to further improve in the near to medium term. The leverage metric as measured by total debt1 /annualised net operating income (NOI) is estimated to improve to 5.5-6.0 times as of March 2026 from 6.4 times as of March 2025. The five-year average debt servicing coverage (DSCR) is expected to remain comfortable at above 1.5 times during FY2026-FY2030, supported by healthy rental inflows. The rating continues to factor in the strength of the promoter, being a part of Mindspace Business Parks REIT (Mindspace REIT, rated [ICRA]AAA (Stable)/[ICRA]A1+) and its strategic importance for the parent. GEPL contributed to 15% of Mindspace REIT’s consolidated NOI for Q1 FY2026 and around 16% of the REIT’s market value as on June 30, 2025. ICRA expects that Mindspace REIT will be willing to extend financial and operational support, if required, given the strategic importance of GEPL to the REIT Group, and the significant contribution of GEPL to the overall EBITDA and valuation of the Group. The rating also factors in GEPL’s established business position, with a favourably located commercial asset in Airoli, Mumbai, which has a completed area of 5.3 million square feet (msf). The under-development/future development area of 1.1 msf in the property includes a built-to-suit data centre, which is fully pre-leased. Moreover, the existing tenant profile is strong and is spread across diversified sectors, with lease tenures ranging within 3 to 15 years, ensuring rental visibility over the near to medium term. ICRA, however, considers GEPL’s moderate tenant concentration risk, wherein the top five tenants contribute to ~46% of the rental income. Nonetheless, the strong tenant profile of the business park, low competition in the vicinity, and significant investments in fitouts mitigate the tenant concentration risk to some extent. The rating also notes the inherent cyclicality in the real estate industry and vulnerability to adverse macroeconomic and external conditions, which could impact the tenant’s business risk profile. Also, the rating notes the susceptibility of its debt coverage metrics to factors such as changes in interest rate or material reduction in occupancy levels. The Stable outlook on the rating reflects ICRA’s expectations that the company will benefit from healthy occupancy levels and will maintain comfortable debt protection metrics.