Bagmane Prime Office REIT, a Bengaluru, based office space real estate investment trust, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of up to 4, 000 crore. The listing will be one of the most significant REITs in the Indian commercial real estate sector in recent times.
The expanded offering will feature a fresh issue of units worth up to 3, 000 crore and an offer for sale (OFS) of units up to 1, 000 crore by the selling unitholder. The REIT's sponsor is Bagmane Realty and Infrastructure LLP, a Bengaluru, based real estate developer with a solid office market presence in the city..
Bagmane Prime Office REIT represents a set of high-quality, Grade A+, office business parks, straddling the prime office micro-markets of Bengaluru. As of June 30, 2025, the properties comprise a gross leasable area of around 20.3 million square feet, out of which 19.6 million square feet was leasable. The properties had a committed occupancy of 97.9%, emphasizing the quality of leasing achievement in Bengaluru.
In terms of portfolio quality and types of assets added to its kitty through acquisition of REIT status, it is worth noting that the REIT’s portfolio comprises six large business parks—namely Bagmane World Technology Centre, Bagmane Constellation Business Park, Bagmane Rio Business Park, Bagmane Tech Park, Bagmane Cosmos Business Park, and Luxor at Bagmane Capital Tech Park. Apart from its office portfolio, it possesses two under-development hotels consisting of 607 room keys and four solar energy assets totaling 164.4 megawatts of DC-rated capacity.
Tenant base appears to be dominantly comprise of foreign-headquartered multinationals/Global Capability Centers (GCCs), who account collectively for a subtotal of about 99% of the gross leased income. The weighted average lease expiry (WALE) of the properties stands at 7.3 years, thus offering stability in the base of income streams. Moreover, the REIT has additionally discovered a mark to market growth in the rental component of about 20.3%, for over 4.2 million square feet of the leased area that will expire between FY2026 and FY2030.
As of June 30, 2025, Bagmane Prime Office REIT reported a gross asset value (GAV) of ₹38,790 crore. Following the IPO, the REIT’s loan-to-value (LTV) ratio is expected to decline to around 7%, reflecting a conservative leverage profile well below regulatory thresholds. The REIT has projected a net operating income (NOI) of ₹2,670 crore for FY2027.
According to the DRHP, the net proceeds from the fresh issue will be primarily used for asset acquisitions. Up to ₹1,775 crore is proposed to be utilised for acquiring Luxor at Bagmane Capital Tech Park, a completed office asset with a leasable area of approximately one million square feet. Additionally, up to ₹1,025 crore will be deployed to part-fund the acquisition of a 93% stake in Bagmane Rio, which owns the 1.1 million square feet Bagmane Rio Business Park. The remaining proceeds, capped at 10% of the net issue size, will be used for general corporate purposes.
JM Financial, Kotak Mahindra Capital, Axis Capital, IIFL Capital Services, SBI Capital Markets, 360 ONE WAM, and HDFC Bank are acting as the book-running lead managers to the issue.
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