Bagmane REIT eyes growth via GCC demand, ROFO pipeline, low leverage

Blackstone-backed REIT targets sustained NOI growth and distributions, supported by a strong ROFO pipeline, low leverage, and continued demand from GCC tenants

Blackstone-backed Bagmane Prime Office Reit is targeting sustained growth in net operating income (NOI) and distributions, backed by a 47 million square feet (msf) right of first offer (ROFO) pipeline and significant debt headroom for acquisitions due to its low loan-to-value ratio (LTV).

 

The Bengaluru-based real estate investment trust (Reit) is betting on continued office demand from global capability centres (GCCs), which account for 89 per cent of its tenant base. It plans to raise ₹3,405 crore through an initial public offering (IPO), valuing it at ₹34,000 crore at the upper end of the ₹95-100 per share price band.

 

 

“The primary strategy (behind going public) is to improve the way the Bagmane Group, the developer and promoter, can deliver its real estate to the investing market. There are tax efficiencies both for the developer and for investors in a Reit listing as opposed to an IPO,” said Richard Hugh Andrew, chief executive officer of Bagmane Prime Office Reit.

 

The Bagmane Reit IPO opens on May 5 and closes on May 7, 2026. It comprises a fresh issue of ₹2,390 crore and an offer for sale (OFS) worth ₹1,015 crore. 

 

The Reit reported NOI of ₹1,758.97 crore in the first nine months of financial year 2025-26 (FY26). Its portfolio has historically delivered 10-12 per cent annual NOI growth, according to Chief Financial Officer Ashay Shah. 

 

NOI is projected to rise to ₹2,675.8 crore in FY27 and ₹3,754.8 crore by FY30 — a 12 per cent compound annual growth rate (CAGR). Net distributable cash flow (NDCF) is estimated to increase from ₹2,095.6 crore in FY27 to ₹2,533.7 crore by FY30.

 

"Because our leverage is low, we intend to distribute nearly all cash flows to investors while funding growth through under-development assets, ROFO acquisitions, and third-party acquisitions,” Shah stated.

 

The Reit’s loan-to-value (LTV) ratio stood at 5 per cent as of December 2025, with net debt of ₹2,552.8 crore. 

 

"We see this as a major strength. Our net debt as of December 2025 was ₹2,552.8 crore. At 5 per cent LTV, we have significant headroom to raise debt for acquisitions and we may not need equity dilution to fund growth,” Shah added.

 

The trust’s portfolio spans 20.3 msf in Bengaluru, including 19.6 msf of office space, with another 3 msf under development.

 

“Beyond that, we will continue evaluating inorganic expansion through third-party assets in core commercial real estate markets,” Shah said.

 

The portfolio also includes 607 hotel keys under development and 164.4 Megawatts (Mw) of energy capacity across four solar parks, three of which are operational. Gross asset value stands at ₹40,260 crore.

 

On non-core assets, Andrew said growth remains linked to the office portfolio, with offices continuing as the primary focus. 

 

The Reit plans to spend ₹3,161.7 crore over the next three to four years to complete under-development assets, with 25 per cent earmarked for hotels. Post-IPO, the Bagmane Group will hold over 82 per cent, while Blackstone will reduce its stake to above 3 per cent. The rest will be held by public shareholders, including pre-IPO investors, subject to a one-year lock-in.  

 

Pre-IPO investors hold around 4 per cent, Blackstone 6.5 per cent, and the sponsor the remainder stake.  "The promoter will continue holding a majority stake post-listing, which reflects a long-term commitment,” Andrew said. 

 

For Blackstone, Bagmane Prime Office marks its fifth Reit platform in India. The firm exited Embassy Office Parks Reit in 2023, sold its stake in Mindspace Business Parks Reit in 2022, partially exited Nexus Select Trust in 2024, and launched Knowledge Realty Trust with Sattva Group in 2025.  

 

Its concentration in Bengaluru and GCC tenants remains a strength. “The group continues to focus on Bengaluru because it has consistently been the best-performing office market for nearly a decade,” Shah said.

 

"We remain strongly confident in the macro economy and believe GCCs will continue to focus on expanding in India,” Andrew added. Executives added that they had not seen any impact from layoffs on its portfolio. 

 

On the West Asia crisis, Andrew said macroeconomic implications remain, especially through oil prices. "But this is not the first geopolitical disruption markets have navigated. Real estate has historically shown resilience and tends to recover quickly. We continue to monitor developments and will adjust strategy if needed,” he added.