In a major move for India's commercial real estate market, the Bagmane Group, in partnership with global investment giant Blackstone, has initiated plans to launch a massive real estate investment trust (REIT). The proposed Bagmane Prime Office REIT aims to raise approximately ₹4,000 crore through a public listing, marking a significant infusion into the country's growing REIT ecosystem.
Regulatory Filing and Market Position
The company took the crucial first step by submitting its draft offer document to the Securities and Exchange Board of India (Sebi) on Tuesday. Upon successful listing, the Bagmane REIT will become India's sixth listed REIT. This development follows closely on the heels of another Blackstone-linked entity, Horizon Industrial Parks, which filed for a ₹2,600 crore IPO just a day earlier.
Currently, India's listed REIT landscape comprises four office-focused trusts: Mindspace Business Parks REIT, Embassy Office Parks REIT, Brookfield India Real Estate Trust (BIRET), and Knowledge Realty Trust (KRT). Nexus Select Trust is the sole retail-focused REIT in the public market.
Portfolio Strength and Tenant Profile
The Bagmane REIT's portfolio is formidable, centered on Bengaluru, India's top-performing commercial office market. It will house around 20 million square feet of office assets, with 16 million sq ft already completed and operational. These assets are spread across six Grade A office parks in the city.
A key strength of the portfolio is its near-full occupancy and high-quality tenant base. The properties are almost fully leased, with about 99% of occupiers being multinational corporations. Notably, a significant 89% of these tenants are Global Capability Centres (GCCs), underscoring Bengaluru's status as a premier hub for global outsourcing and R&D operations. The total gross asset value of the REIT is estimated at a staggering ₹39,000 crore.
Backing by Industry Giants and Future Pipeline
The REIT is backed by the established Bengaluru-based real estate developer Bagmane Group, founded in 1996. The group has a strong track record, having developed about 28 million sq ft of commercial space with another 7 million sq ft under construction. Its future development pipeline is robust at nearly 47 million sq ft.
Adding significant heft is the support from Blackstone, one of the world's largest alternative asset managers. Blackstone had acquired a minority pre-IPO stake in Bagmane's portfolio in December 2024, signaling strong confidence in the underlying assets and the REIT's potential.
Growth of India's REIT Market
The move by Bagmane and Blackstone highlights the remarkable maturation of India's REIT market in a short span. According to property advisory firm JLL India, the sector has evolved from a single REIT in 2019 to five listed REITs today, collectively controlling 174 million sq ft of leasable office and retail space.
The market capitalization has witnessed explosive growth, soaring from $3.1 billion in the 2019-2020 period to approximately $19 billion as of September 30, 2025. This trajectory underscores the increasing acceptance of REITs as a viable investment vehicle for both institutional and retail investors seeking exposure to income-generating real estate without direct property ownership, as Sebi mandates that at least 80% of a REIT's assets be completed and income-producing.
The proposed Bagmane Prime Office REIT issue represents a major vote of confidence in the long-term resilience and growth of India's commercial real estate, particularly in the technology-driven market of Bengaluru.
