India’s REIT Momentum Builds With Bagmane REIT Rs. 3,405 Cr IPO

Bagmane Prime Office REIT Rs3,405 crore IPO opens on May 5. Shashank Bagmane, Non-executive Director & Ashay Shah, CFO Bagmane Prime Office REIT share details.

BY Sapna Srivastava
Published - Thursday, 30 Apr, 2026

India’s REIT Momentum Builds With Bagmane REIT Rs. 3,405 Cr IPO

The upcoming Rs3,405 crore IPO of Bagmane Prime Office REIT isn’t just another listing—it’s a strong reaffirmation of institutional conviction in India’s office real estate. Backed by global investment giant Blackstone, this marks the sixth REIT in the country and yet another strategic bet by the private equity major on India’s commercial assets.

Bagmane Prime Office REIT (“REIT”), a Bengaluru-based commercial office REIT portfolio comprises 6 premium Grade A+ business parks with 20.3 million square feet total area, and it is located in the world’s best performing micro-markets (by net absorption since from CY2021 to CY2025).

The portfolio consists of 19.6 million square feet of leasable area, including 16.6 million square feet completed area which is ~ 99% occupied, the highest occupancy amongst Indian REITs post listing. The tenant roster comprises ~ 89% global capability centers and marquee foreign-headquartered multinational tenants, who rank among the largest companies globally in terms of market capitalization.

With near-full occupancy assets and a predominantly MNC tenant base, Shashank Bagmane for sustained growth and rental upside is betting big on existing assets. “Most of our assets, even if you were to take some of the original assets in the secondary business districts SBDs in Bangalore, the rents have surged from the early ₹40s to over ₹150 per sq. ft. And we feel that this is just the beginning.

Shashank further added, “Additionally, India’s unique built-in escalation clauses—typically 15% every three years or ~5% annually—provide a steady baseline. Notably, market rents have historically outpaced escalations, growing at 6–7% CAGR in key markets. Our rentals can go up to 17% higher basis current market rents, offering near-term upside through renewals and re-leasing. On top of that, new developments and acquisitions are expected to capture higher market benchmarks, while pipeline assets will act as incremental value drivers, not just add-ons.”

Briefing on the capital allocation priorities post-IPO Ashay Shah shared, “We plan to maintain a disciplined capital strategy post-listing. Our Loan-to-Value (LTV) is currently at ~5%, with a focus to retain strong credit ratings, majority of the Cash Flows will be distributed to investors, in line with REIT norms and our Capex Pipeline of ~₹3,000 crore is earmarked for ~3 million sq. ft. of commercial development and 2 hotel projects. Funding will be primarily through debt for under-construction assets and any new acquisitions will be opportunistic, with strict quality filters. Moreover, the REIT is poised for sustained growth given its ROFO pipeline of 47+ million square feet, the largest amongst Indian office REITs post listing.”

“Blackstone entered in 2024 with a ~7% minority stake and brought in global REIT expertise and operational insight. They played a key advisory role during the IPO journey, not as sponsor in the REIT structure. They will have a partial stake sale during IPO; remaining stake under 1-year lock-in. Post-listing, Blackstone will operate like any public market investor in Bagmane REIT. The structure mirrors their role in Mindspace Business Parks REIT—offering credibility and know-how without direct control,” informed Ashay Shah.

Presently, the company has tied up commitments for 8.5 crore units for Rs 850 crore (at Rs 100 per unit) with Strategic Investors including UTI Mutual Fund, Nishtha Jhunjhunwala Discretionary Trust, Aryaman Jhunjhunwala Discretionary Trust, Aryavir Jhunjhunwala Discretionary Trust, Axis Max Life Insurance Limited, ICICI Pension Fund Management Limited, 360 One Real Assets Development Fund, Star Health & Allied Insurance Company Limited, Kotak Mahindra Life Insurance Company Limited and others

The IPO Offer

The Bid/Offer will open on Tuesday, May 05, 2026 and close on Thursday, May 07, 2026. Price Band for the [Offer} has been fixed at ₹95 to ₹100 per Unit. Bids can be made for a minimum of 150 Units and in multiples of 150 Units thereafter by bidders other than Anchor Investors and Strategic Investors.

The initial public offer comprises a fresh issuance of Units aggregating up to Rs2,390 crore by the REIT (“Fresh Issue”) and an offer for sale of Units by BREP Asia III India Holding Co VIII Pte. Ltd. (an affiliate of Blackstone) aggregating upto Rs 1,015 crore (“Offer for Sale” and together with the Fresh Issue, the (“Offer”).

The Offer is being made through the Book Building Process and in compliance with the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 (“REIT Regulations”) and the REIT Master Circular dated July 11, 2025, wherein not more than 75% of the Issue (excluding the Strategic Investor portion) shall be available for allocation on a proportionate basis to Institutional Investors and not less than 25% of the Issue (excluding the Strategic Investor portion) shall be available for allocation to Non-Institutional Investors, in accordance with the REIT Regulations.

The Sponsor to the REIT, Bagmane Realty and Infrastructure LLP (holding entity of the Bagmane Group), is one of India’s leading and Bengaluru’s largest pure play Grade A+ office owner and developer*. Axis Trustee Services Limited is the Trustee and Bagmane Realty Investment Manager Private Limited is the Manager to the REIT.

Lead Managers to the Offer are JM Financial Limited, Axis Capital Limited, IIFL Capital Services Limited, Kotak Mahindra Capital Company Limited, SBI Capital Markets Limited, 360 ONE WAM Limited and HDFC Bank Limited. Registrar to the Offer is Kfin Technologies Limited. The Units are proposed to be listed on BSE Limited and National Stock Exchange of India Limited.