Bagmane Prime Office REIT, a real estate investment trust that owns and manages premium Grade A+ business parks in Bengaluru, opens for subscription on May 5.
Bagmane Group, one of India’s leading pure-play Grade A+ office owners and developers with nearly three decades of experience in the city. Sushil Finance, which has reviewed the issue, recommends it for a medium to long-term investment horizon. The issue closes on May 7.
Unlike a regular IPO, this is a REIT — a structure designed to hold income-generating real estate assets and distribute the majority of cash flows to unitholders.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | May 5, 2026 |
| Issue Closes | May 7, 2026 |
| Price Band | Rs 95 – Rs 100 per unit |
| Issue Size | Rs 3,405 crore (at upper cap) |
| Fresh Issue | Rs 2,390 crore |
| Offer for Sale | Rs 1,015 crore |
| Total Units | 34.05 crore units |
| Lot Size | 150 units and multiples thereof |
| Minimum Investment | Rs 15,000 at upper band |
| NAV per Unit (Dec 31, 2025) | Rs 109.13 |
| Listing | BSE and NSE |
| Sponsor | Bagmane Realty and Infrastructure LLP |
| Manager | Bagmane Realty Investment Manager Pvt. Ltd. |
| Trustee | Axis Trustee Services Ltd. |
| Registrar | KFin Technologies Ltd. |
The issue is split 75% for institutional investors and 25% for non-institutional investors.
Objects of the Issue
| Object | Amount (Rs crore) |
|---|---|
| Part funding acquisition of Luxor @ Bagmane Capital Tech Park by BDPL | 1,420.00 |
| Part funding acquisition of 93% equity in Bagmane Rio Private Limited by BDPL | 820.00 |
| General corporate purposes | Balance |
| Total Fresh Issue | 2,390.00 |
The company will not receive any proceeds from the Offer for Sale portion.
What the Trust Holds
Bagmane Prime Office REIT’s portfolio comprises six premium Grade A+ business parks with 20.3 msf of total area, including 19.6 msf of leasable area, as of December 31, 2025. Beyond office space, the portfolio also includes two under-construction hotels totalling 607 keys and four solar power projects with an aggregate capacity of 164.4 MW (DC).
The portfolio’s operational metrics stand out. Committed occupancy was 98.8% as of December 31, 2025 — set to be the highest among listed Indian office REITs post-listing — and the trust has maintained occupancy above 94.1% since FY2021, including through the pandemic. It carries a Weighted Average Lease Expiry of 7.4 years, providing long-term contracted cash flows, and its asset market rents are estimated at 17.6% above existing average rents, offering mark-to-market upside on lease renewals.
The tenant roster is a key differentiator, anchored by marquee foreign-headquartered multinationals including Google, Amazon, Nvidia, and Volvo. Foreign-headquartered multinational and Global Capability Center tenants accounted for 98.7% and 88.5% respectively of gross contracted rentals for the month ended December 31, 2025. The assets are concentrated in Bengaluru’s premier micro-markets — Outer Ring Road and Secondary Business District (SBD City) — which rank among the world’s best-performing office micro-markets by net absorption.
Financial Performance
| Particulars (Rs crore) | FY23 | FY24 | FY25 | 9M FY26 |
|---|---|---|---|---|
| Total Income | 2,002.5 | 2,237.3 | 2,390.9 | 1,959.8 |
| Net Operating Income | 1,759.0 | 2,084.4 | 1,865.9 | 1,669.2 |
| Profit After Tax | 758.7 | 809.4 | 897.1 | 829.0 |
The trust has posted consistent all-round growth in both its top and bottom lines over the reported periods. It has been assigned issuer ratings of Provisional CARE AAA/Stable and Provisional ICRA AAA/Stable, reflecting strong financial standing. Net Distributable Cash Flow — the metric most relevant for REIT investors — is projected to rise from around Rs 2,096 crore in FY27 to Rs 2,534 crore by FY30.
Valuation and Peer Comparison
The issue is priced at Rs 95–100 per unit against a NAV of Rs 109.13 as of December 31, 2025, meaning investors subscribe at a discount to NAV. Among listed office REIT peers:
| Peer | NAV per Unit (Rs) | Discount to NAV |
|---|---|---|
| Embassy Office Parks REIT | 445.91 | (4.38)% |
| Mindspace Business Parks REIT | 484.90 | (3.05)% |
| Brookfield India Real Estate Trust | 355.00 | (7.17)% |
| Knowledge Realty Trust | 118.00 | (1.47)% |
The View
Sushil Finance notes that Bagmane Prime Office REIT is an ideal vehicle for investors seeking defensive yields combined with long-term growth, citing its world-class tenant roster, the lowest leverage in the sector, and an unprecedented acquisition pipeline through ROFO rights. The brokerage assigns a “Recommend” view for a medium to long-term horizon based on the trust’s superior asset quality, dominant Bengaluru market position, and a growth pipeline that offers both stability and capital appreciation.
Risks to Consider
The portfolio is heavily concentrated in Bengaluru commercial real estate, leaving it exposed to any localised slowdown in that single market. As with all REITs, rental yields are sensitive to interest rate movements, which can affect unit price and distribution attractiveness. The high degree of tenant stickiness from build-to-suit arrangements, while a strength for retention, could also become a constraint on flexibility for future expansion. Investors should focus on Net Distributable Cash Flow growth as the key metric driving returns over time.