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Bagmane Prime Office REIT, backed by Blackstone, is planning to expand beyond Bengaluru into Chennai and Delhi as it prepares for its initial public offering (IPO) aimed at raising INR 3,405 crore. The REIT has projected a net operating income (NOI) of INR 2,675.8 crore for FY27, driven primarily by its Bengaluru office portfolio, including assets such as Bagmane Tech Park and Bagmane World Technology Centre. The IPO comprises a fresh issue of INR 2,390 crore and an offer-for-sale of up to INR 1,015 crore. While the current portfolio is concentrated in Bengaluru, the company indicated that it is evaluating growth opportunities in other major office markets. Revenue is projected to increase from INR 3,008.2 crore in FY27 to INR 4,424.9 crore by FY30.
Bagmane Prime Office REIT, backed by Blackstone Inc., is planning to expand its commercial office portfolio into Chennai and Delhi, while continuing to strengthen its presence in Bengaluru, as it prepares to launch an initial public offering (IPO) to raise INR 3,405 crore. The development was outlined earlier in the past week by the company’s management. Advertisement
Currently concentrated in Bengaluru, the REIT is evaluating opportunities to diversify into other major office markets. The chief executive officer, Richard Hugh Andrew, indicated that the company sees potential to develop and acquire assets in Chennai and Delhi, while continuing to explore growth prospects within Bengaluru, which remains its primary market.
According to the offer document, Bagmane Prime Office REIT has projected a net operating income (NOI) of INR 2,675.8 crore for FY27. The majority of this income is expected to be generated from its office assets, with a smaller contribution from solar park operations. NOI is a key metric for real estate investment trusts, reflecting the income generated from operating properties.
Among individual assets, Bagmane Tech Park is expected to contribute approximately INR 751 crore to NOI in FY27, followed by Bagmane World Technology Centre at INR 659.9 crore, Bagmane Constellation Business Park at INR 594.1 crore, and Bagmane Cosmos Business Park at INR 211.8 crore. Over a longer-term horizon, NOI from Bagmane Cosmos Business Park is projected to increase significantly, reaching around INR 807.3 crore by FY30.
The REIT has also projected revenue of INR 3,008.2 crore for FY27, with expectations of growth to INR 4,424.9 crore by FY30, indicating anticipated expansion in leasing income and asset performance over time.
The proposed IPO, scheduled to open in the coming days, includes a fresh issue of units worth INR 2,390 crore, alongside an offer-for-sale of up to INR 1,015 crore by existing unitholders. The capital raised is expected to support the REIT’s growth plans, including potential acquisitions and development of new office assets.
Bagmane Prime Office REIT’s strategy reflects a broader trend among office-focused REITs to diversify geographically while maintaining core portfolios in established markets. Bengaluru remains a key office market due to its concentration of technology companies and established commercial infrastructure, providing a stable base for rental income.
The proposed expansion into Chennai and Delhi indicates an effort to tap into other major office markets with strong occupier demand and infrastructure support. These markets offer opportunities for asset acquisition and development, particularly as demand for Grade A office space continues across key urban centres.
The upcoming IPO and expansion plans position Bagmane Prime Office REIT to scale its portfolio beyond its current footprint, aligning with evolving demand patterns in India’s commercial real estate sector.
Source - PTI
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