New Delhi: Bagmane Prime Office REIT, which is backed by Bengaluru-based realty firm Bagmane Group, has filed a draft paper with market regulator to launch its Initial Public Offering (IPO) to raise up to Rs 4,000 crore. The Real Estate Investment Trusts (REITs) are investment vehicles that own or operate income-generating real estate, enabling investors to earn a share of the income produced without directly purchasing the properties.
At present, there are five listed REITs in India- Sattva Group and Blackstone-backed Knowledge Realty Trust (KRT), K Raheja Corp-backed Mindspace Business Parks REIT, Brookfield India Real Estate Trust, Embassy Office Parks REIT and Nexus Select Trust. According to a draft offer document filed with the SEBI, the IPO comprises fresh issue of units up to Rs 3,000 crore while the size of the Offer For Sale (OFS) would be up to Rs 1,000 crore.
The net proceeds will be used to acquire Luxor at Bagmane Capital Tech Park (spanning one million sq ft) for Rs 1,775 crore. It will utilise an amount up to Rs 1,025 crore to part-fund the acquisition of a 93 per cent stake in Bagmane Rio, which owns the 1.1 million sq ft Bagmane Rio Business Park. Bagmane Office REIT has a portfolio of six Grade A+ business parks with a total area of 20.3 million sq ft (16.1 million sq ft completed area), including 0.7 million sq ft of two under-construction hotels with 607 keys.
As of June 30, 2025, the portfolio has 97.9 per cent committed occupancy. The REIT has a Gross Asset Value (GAV) of Rs 38,790 crore as of June 30, 2025. According to sources, global investment firm Blackstone acquired a minority pre-IPO stake in the REIT portfolio. Out of the five listed REITs, only Nexus Select Trust is backed by rent-yielding retail real estate (shopping malls) while the other four are office REITs.
Amid strong office demand post COVID pandemic, real estate developers and institutional owners of office complexes are looking to monetise their commercial assets through REIT public issues.
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