Bagmane Group Prepares for ₹4,000 Crore REIT IPO to Tap into Growing Real Estate Market

Bagmane Prime Office REIT, a subsidiary of the Bengaluru-based realty firm Bagmane Group, has filed a draft paper with the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). The IPO aims to raise up to ₹4,000 crore, marking a significant step in the company's strategy to capitalize on the robust real estate market.

The Real Estate Investment Trusts (REITs) are investment vehicles that own or operate income-generating real estate properties. They allow investors to earn a share of the income produced without directly purchasing the properties. In India, there are currently five listed REITs: 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 the draft offer document filed with SEBI, the IPO comprises a fresh issue of units up to ₹3,000 crore, while the Offer For Sale (OFS) would be up to ₹1,000 crore. The net proceeds from the IPO will be used to acquire Luxor at Bagmane Capital Tech Park, a property spanning one million square feet, for ₹1,775 crore. Additionally, the REIT will utilize up to ₹1,025 crore to part-fund the acquisition of a 93 percent stake in Bagmane Rio, which owns the 1.1 million square foot Bagmane Rio Business Park.

Bagmane Office REIT boasts a portfolio of six Grade A business parks, totaling 20.3 million square feet, including 0.7 million square feet of two under-construction hotels with 607 keys. As of June 30, 2025, the portfolio has a committed occupancy of 97.9 percent, with a Gross Asset Value (GAV) of ₹38,790 crore.

Sources reveal that global investment firm Blackstone has acquired a minority pre-IPO stake in the REIT portfolio, further bolstering its financial strength and market appeal. Among 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.

The decision to go public through an IPO comes at a time when the demand for office spaces has surged post-COVID-19 pandemic. Real estate developers and institutional owners of office complexes are increasingly looking to monetize their commercial assets through REIT public issues. This trend is expected to continue as the real estate market in India remains robust and investor interest in REITs grows.