Blackstone backed Bagmane Prime Office plans to raise ₹4,000 Cr via REIT IPO

SYNOPSIS: India’s fast-growing REIT market may add a sixth player as Blackstone-backed Bagmane Prime Office REIT plans a Rs. 4,000 crore issue, backed by premium Bengaluru offices, strong occupancy, and marquee tenants.

India’s REIT market has come a long way in a relatively short span. Over the past six years, market capitalisation has jumped from $3.1 billion in FY20 to about $19 billion as of 30th September 2025.

What started with just one REIT in 2019 has now grown into five listed REITs controlling nearly 174 million sq ft of leasable office and retail space, underlining the sector’s strong growth story, as per sources.

Bagmane Prime Office REIT plans Rs. 4,000 crore issue

Riding this momentum, Blackstone and Bagmane Group-backed Bagmane Prime Office REIT is gearing up to enter the capital markets with a Rs. 4,000 crore REIT issue. Bagmane Group is Bengaluru’s largest and one of India’s leading pure-play Grade A+ office owners and developers, while Blackstone is a global asset manager which had acquired a minority pre-IPO stake in the REIT’s portfolio in December 2024.

The company filed its draft offer document with the Securities and Exchange Board of India (SEBI) on Tuesday for the proposed listing. Notably, this is the second public issue proposal linked to Blackstone in just two days. A day earlier, Horizon Industrial Parks had filed papers for a Rs. 2,600 crore IPO.

If approved, Bagmane Prime Office REIT would become India’s sixth listed REIT, further deepening the country’s commercial real estate investment landscape. The proposed issue will include a Rs. 3,000 crore fresh issue along with a Rs. 1,000 crore offer for sale (OFS).

At present, India has four listed office REITs – Mindspace Business Parks REIT, Embassy Office Parks REIT, Brookfield India Real Estate Trust, and Knowledge Realty Trust. In addition, Nexus Select Trust is the fifth and stands out as the country’s only retail-focused REIT.

Use of proceeds, portfolio strength, and tenants

The net proceeds from the issue will largely be utilised to expand and strengthen the portfolio. Around Rs. 1,775 crore will go toward acquiring Luxor at Bagmane Capital Tech Park, a one-million sq ft office asset.

In addition, up to Rs. 1,025 crore will be used to partly fund the acquisition of a 93 percent stake in Bagmane Rio Private Limited (BRPL), which owns the 1.1 million sq ft Bagmane Rio Business Park. The balance will be earmarked for general corporate purposes, such as exigencies and expenses, though this portion is capped at 10 percent of total net proceeds.

Bagmane Prime Office REIT currently owns a portfolio of 6 premium Grade A+ business parks spanning 20.3 million sq ft, of which 16.1 million sq ft is already operational. The portfolio also includes 2 under-construction hotels with a combined 0.7 million sq ft and 607 keys. As of 30th June 2025, the portfolio reported a 97.9 percent committed occupancy, while its gross asset value (GAV) stood at Rs. 38,790 crore.

The REIT’s tenant roster features marquee global names such as Google, Amazon, and Nvidia. Between April 2022 and June 2025, the REIT leased 6.3 million sq ft, with 95.8 percent of this space taken up by existing tenants, underscoring strong tenant stickiness, as highlighted in its Draft Red Herring Prospectus (DRHP).

The issue is being managed by a consortium of leading financial institutions, with JM Financial Limited, Kotak Mahindra Capital Company Limited, Axis Capital Limited, IIFL Capital Services Limited, SBI Capital Markets Limited, 360 ONE WAM Limited, HDFC Bank Limited, and KFin Technologies Limited acting as the book-running managers.

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