Blackstone-backed Bagmane Prime Office Reit, which is set to launch its ₹3,405-crore initial public offering (IPO) next week, expects strong leasing momentum led by global capability centres (GCCs) as it looks to acquire assets and grow its portfolio, CEO Richard Hugh Andrew said.
The IPO, which opens on 5 May, comprises an issue of fresh shares worth ₹2,390 crore and an offer for sale (OFS) worth up to ₹1,015 crore by a Blackstone affiliate. The proceeds from the new shares will be used to part-fund the acquisitions of Luxor at Bagmane Capital Tech Park, a million sq ft completed asset, and a 93% stake in Bagmane Rio Business Park, a 1.1 million sq. ft leased building.
India currently has four listed office Reits—Mindspace Business Parks Reit, Embassy Office Parks Reit, Brookfield India Real Estate Trust (Biret) and Knowledge Realty Trust. Nexus Select trust is the only listed retail Reit in India.
“This is the sixth Reit coming to the market, and there is a level of stability in interest from institutional and retail investors. It is a 20 million sq. ft portfolio of prime real estate, of which 16.6 million sq. ft is leased. Of this, 99% of space is leased to global corporations and 89% to GCCs,” Andrew told Mint in an interview.
Bagmane Realty and Infrastructure LLP, the holding entity of Bagmane Group, is the Reit’s sponsor. Founded in Bengaluru in 1996, Bagmane Group is a pure-play grade-A office developer.
Growth pipeline
“We have a strategic partnership with Blackstone, and have leveraged their brand and global experience. We have an incredible acquisition pipeline of 47 million sq. ft ROFO assets and headroom for third-party acquisitions that will expand the Reit's portfolio substantially,” Andrew added.
In Reits, ROFO or right of first offer is a contractual clause granting the trust the first opportunity to purchase assets from its sponsor or promoter before they are offered to third parties. It acts as a pipeline for growth, allowing the Reit to expand its portfolio.
Bagmane REIT’s chief financial officer Ashay Shah said, “Since our leverage is low, we intend to distribute nearly all cash flows to investors while funding growth through under-development assets, ROFO acquisitions, and third-party acquisitions." The REIT’s net debt as of December 2025 was ₹2,552.8 crore.
A Reit is a trust that owns a pool of income-generating commercial real estate assets, such as office parks and shopping malls, held in a special purpose vehicle (SPV). It generates revenue by leasing these properties and collecting rent from tenants.
Blackstone has backed four of India’s five publicly listed REITs, with Brookfield India Real Estate Trust being the only exception. The upcoming Bagmane REIT listing will mark the global asset manager's fifth such IPO in the country.
“A successful IPO like this will give confidence to the wider REIT market. Commercial office space remains attractive because it delivers stable rent and cash flows,” Asheesh Mohta, head of real estate in India at Blackstone, told Mint. “India remains a long-term opportunity for us and we will continue to look at new investments and exits based on the nature of our funds."
In December 2024, Blackstone acquired a minority pre-IPO stake in Bagmane REIT.
Mohta added, “India office demand remains strong and leasing momentum has been healthy. While warehouses have become a strong growth-oriented subset, I believe we will continue to, in the short term, gravitate towards large commercial assets.”
According to the Indian Reits Association (IRA), the five Reits had a combined gross asset value of more than ₹2.3 trillion as of February. All the office Reits have reported growth in net operating income, occupancy, and distributions in the past year, a trend that is expected to continue, driven by demand from GCCs and domestic occupiers.
Andrew said the Reit has strong pre-leasing commitments for its under-construction assets. It is also developing two hotels within its office park in Bengaluru. "There is very good demand from GCCs, and high technology requirements for space. Around 21% of our portfolio is leased to semiconductor tenants,” Andrew said.
Blackstone's Mohta said, “About six existing REIT listings have built strong confidence in the market. Despite bouts of volatility, they have remained stable and delivered solid performance, which is encouraging fresh IPO activity.”