Bagmane Prime Office REIT Files DRHP for ₹4,000 Crore IPO: A Major Leap in Indian Commercial Real Estate

Bagmane Prime Office REIT, a leading real estate investment trust (REIT) based in Bengaluru, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) valued at up to ₹4,000 crore. This move marks a significant milestone in the Indian commercial real estate sector, highlighting the growing interest and confidence in the market.

The IPO will consist of a fresh issue of units worth up to ₹3,000 crore and an offer for sale (OFS) of units worth up to ₹1,000 crore by the selling unitholder. The REIT’s sponsor, Bagmane Realty and Infrastructure LLP, is a well-established real estate developer known for its robust presence in the Bengaluru office market.

Bagmane Prime Office REIT boasts a portfolio of high-quality, Grade A+ office business parks located in the prime office micro-markets of Bengaluru. As of June 30, 2025, the REIT's properties encompass a gross leasable area of approximately 20.3 million square feet, with 19.6 million square feet currently leasable. The properties have achieved a committed occupancy rate of 97.9%, underscoring the strong demand and quality of the leasing in Bengaluru.

The REIT’s portfolio includes six large business parks: 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. In addition to its office portfolio, the REIT also owns two under-development hotels with 607 room keys and four solar energy assets totaling 164.4 megawatts of DC-rated capacity.

The tenant base is predominantly composed of foreign-headquartered multinationals and Global Capability Centers (GCCs), which collectively account for about 99% of the gross leased income. The weighted average lease expiry (WALE) of the properties stands at 7.3 years, ensuring a stable income stream. Furthermore, the REIT has identified 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. Post-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 primarily be used for asset acquisitions. Up to ₹1,775 crore is proposed to be utilized 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.

The book-running lead managers for the issue are JM Financial, Kotak Mahindra Capital, Axis Capital, IIFL Capital Services, SBI Capital Markets, 360 ONE WAM, and HDFC Bank.

Bagmane Prime Office REIT’s IPO is expected to attract significant interest from investors, given the robust performance and high-quality assets in its portfolio. This listing is a testament to the growing maturity and attractiveness of the Indian commercial real estate market, particularly in a city like Bengaluru, which continues to be a hub for global businesses and innovation.