Bagmane Prime Office REIT Files for ₹4,000 Crore IPO with Strategic Acquisitions
Bagmane Prime Office REIT has filed for a ₹4,000 crore IPO comprising ₹3,000 crore fresh issue and ₹1,000 crore offer for sale. The proceeds will fund acquisitions of Luxor at Bagmane Capital Tech Park for ₹1,775 crores and 93% stake in Bagmane Rio for ₹1,025 crores. The portfolio includes six Grade A+ business parks totaling 20.3 million sq ft with 97.9% occupancy and major tenants like Google, Amazon, and Samsung.
*this image is generated using AI for illustrative purposes only.
Bagmane Prime Office REIT, backed by Bengaluru-based Bagmane Group and supported by global investment firm Blackstone, has filed its draft prospectus with SEBI for a ₹4,000 crore initial public offering. The filing marks another significant entry into India's expanding real estate investment trust market, which currently hosts five listed REITs including Embassy Office Parks REIT, Mindspace Business Parks REIT, Brookfield India Real Estate Trust, Knowledge Realty Trust, and Nexus Select Trust.
IPO Structure and Fund Utilization
The public offering follows a standard REIT structure combining fresh capital raising with existing investor exit opportunities:
| Component | Amount (₹ Crores) |
|---|---|
| Fresh Issue | 3,000.00 |
| Offer for Sale | 1,000.00 |
| Total IPO Size | 4,000.00 |
The net proceeds from the fresh issue will be strategically deployed for two major acquisitions. The REIT plans to acquire Luxor at Bagmane Capital Tech Park, spanning one million square feet, for ₹1,775 crores. Additionally, up to ₹1,025 crores will be utilized to part-fund the acquisition of a 93% stake in Bagmane Rio, which owns the 1.1 million square feet Bagmane Rio Business Park.
Portfolio Scale and Performance Metrics
Bagmane's portfolio demonstrates significant scale and operational efficiency:
| Portfolio Metric | Details |
|---|---|
| Total Area | 20.30 million sq ft |
| Completed Area | 16.10 million sq ft |
| Under-Construction Hotels | 0.70 million sq ft (607 keys) |
| Current Occupancy | 97.90% |
| Gross Asset Value | ₹38,790 crores |
| Post-Issue Leverage | ~7.00% |
The portfolio comprises six Grade A+ business parks primarily located in Bengaluru, with committed occupancy of 97.90% as of June 30. The high occupancy rate reflects strong tenant demand and quality asset positioning in India's technology hub.
Market Context and Tenant Profile
The REIT has secured high-quality tenants from the technology sector, with major multinational corporations including Google, Amazon, and Samsung among its biggest occupants. This blue-chip tenant mix provides income stability and reflects the trust's strategic focus on attracting premium corporate clients.
| Key Highlights | Details |
|---|---|
| Major Tenants | Google, Amazon, Samsung |
| Asset Grade | Grade A+ business parks |
| Primary Market | Bengaluru |
| ROFO Pipeline | 47+ million sq ft |
The investment trust enters a competitive landscape where existing REITs are being evaluated on distribution stability, tenant quality, and leverage discipline. With four of the five listed REITs focused on office real estate and only Nexus Select Trust operating in retail, Bagmane will compete directly with established office REIT players.
Strategic Positioning and Growth Outlook
Bagmane's conservative 7% projected leverage positions it among the least levered office REITs at listing, demonstrating balance sheet prudence in a market increasingly focused on debt management and refinancing capabilities. The right-of-first-offer pipeline exceeding 47 million square feet provides substantial expansion optionality for future growth.
JM Financial, Kotak Mahindra Capital, Axis Capital, IIFL Capital Services, SBI Capital Markets, 360 ONE, and HDFC Bank are serving as book running lead managers for the issue. The timing aligns with renewed institutional investor interest in commercial real estate, driven by strong office demand following the post-pandemic recovery.
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