Bagmane Group Rs. Filed draft paper to launch 4K crore REIT public issue

Bagmane Prime Office REIT, backed by Bengaluru-based realty firm Bagmane Group, raised Rs. has filed draft papers with the market regulator to launch its initial public offering (IPO) to raise up to Rs 4,000 crore.

Real estate investment trusts (REITs) are investment vehicles that own or manage income-producing real estate, enabling investors to receive a share of the income produced without directly purchasing the properties.

Currently, there are five listed REITs in India – 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 will raise Rs. 3,000 crore includes fresh issue of units while the offer for sale (OFS) size is Rs. 1,000 crores.

The net proceeds will be used by Luxor at Bagman Capital Tech Park (spread over 10 lakh sq ft) at Rs. 1,775 crore to be acquired. It paid Bagam Rs. 1,025 crore, which owns the 1.1 million sq ft Bagman Rio Business Park.

Bagmane Office REIT has a portfolio of six Grade A+ business parks totaling 20.3 million square feet (16.1 million square feet of gross floor area), including 0.7 million square feet of two under-construction hotels with 607 keys.

As of June 30, 2025, the portfolio has 97.9 percent committed occupancy. The REIT has as on June 30, 2025 Rs. 38,790 crore has a gross asset value (GAV).

Global investment firm Blackstone acquired a minority pre-IPO stake in the REIT portfolio, according to sources.

Of 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.

Amid strong office demand after the Covid pandemic, real estate developers and institutional owners of office complexes are looking to monetize their commercial assets through REIT public issues.