India's fifth office-led REIT's ₹3,405 crore IPO opened for subscription on Tuesday and achieved 83% subscription on Day 2, driven by steady institutional and investor interest. The public issue includes an offer-for-sale by Blackstone-managed funds of around ₹1,015 crore. Despite strong institutional backing, including from the Jhunjhunwala Trust, grey market signals are muted, with the REIT aiming to list at ₹100. The Bengaluru-focused REIT boasts premium office assets with high occupancy and marquee tenants like Google and Amazon, projecting attractive yields.
Despite recent concerns around the IT services sector, Bagmane Prime Office REIT plans to maintain its focus on Bengaluru as its primary market for organic growth and expansion. According to the REIT's sponsors, Bengaluru remains a hub for global capability centres (GCCs), defined as strategic facilities by multinational companies to develop new products and functions. A report by FICCI and Anarock shows that Bengaluru has around one-third of India's GCCs, with more on the way. As reported by Bagmane Prime Office REIT, many of these facilities are located along the Outer Ring Road corridor, where the Bagmane Group has developed key properties that will be part of the REIT.
The REIT will have high exposure to GCCs at around 89 percent of its portfolio, which have long-term leases at their properties. Among the tenants, the REIT counts Google, Amazon, Texas Instruments, Samsung, and Volvo among marquee GCC occupiers, which have also expanded their operations there. According to Bagmane Prime Office REIT, the group continues to explore other cities, mainly Pune, Mumbai, and Hyderabad for further expansion, including greenfield land at the group level, and third-party purchases to roll into the REIT.
Around 19.6 million square feet of office space developed by the Bagmane Group will be part of the REIT, and the portfolio is expected to reach 47 million square feet over the next few years, powered by completions at the sponsor level, both in Bengaluru, as well as upcoming developments in Chennai and the National Capital Region (NCR). The REIT's focus on high-quality, high-occupancy assets in Bengaluru positions it well for sustained growth in India's real estate sector, which saw record equity inflows of USD 30.7 billion between 2024 and the first quarter of 2026, with momentum expected to sustain amid resilient demand and expanding avenues.
