Blackstone-Backed Horizon Industrial Parks, Bagmane File for India REIT IPOS

Blackstone is set to add two more India REITs to its growing portfolio of listed real estate trusts in the country after separate companies backed by the US fund management giant filed draft IPO prospectuses on Monday and Tuesday of this week.

Horizon Industrial Parks, which is nearly 88 percent owned by Blackstone, on Monday applied to raise INR 26 billion (approximately $300 million) through an initial public offering, while a draft prospectus posted to the Securities and Exchange Board of India (SEBI) by Bagmane Prime Office REIT, in which Blackstone holds a minority stake, on Tuesday detailed an INR 40 billion plan. 

The pair of trust filings come after Blackstone-backed Knowledge Realty Trust raised INR 62 billion through an August IPO, to add to the US giant’s two earlier REIT launches. In a local media interview earlier this year, Blackstone chairman Stephen Schwarzman pointed to India as a top market for the fund manager. 

“India happens to be our number one performing market in the world for Blackstone,” Schwarzman said. “Our returns here, on a gross basis, are somewhere around 40 percent a year – way in excess of any other market. And we’ve spent our time building businesses in India to make India better, and we foresee being able to double where we are, to have a total exposure of $100 billion at some point in the future.”

Building an India Shed Platform

In its draft red herring prospectus filed with SEBI, Horizon, which is owned by a trio of Blackstone funds, said it plans to use the majority of the IPO proceeds, some INR 22.5 billion, to pay down existing debt. 

The IPO offering by the firm, which ranks itself as India’s largest warehousing and logistics player with a portfolio of 58 million square feet (approximately 5.4 million square meters), includes only new units in the trust, with all existing shareholders maintaining their stakes.

The offering document comes after media reports earlier this month, citing sources familiar with Horizon’s plans, described a $500 million offering. Just last week the company raised INR 16.5 billion in a pre-IPO placement from a range of local institutions and wealthy individuals. 

“Our business is derivative of India’s manufacturing, consumption and e-commerce tailwinds,” Horizon said in its filing. Blackstone built Horizon by acquiring what was then Embassy Industrial Parks from Warburg Pincus and local titan Embassy Group in May 2021, for a reported $700 million, before expanding the platform through development and acquisitions.  

The company’s portfolio was around 93 percent committed as of June, with over 100 customers, nearly 57 percent of which are Fortune 500 companies. 

Horizon saw its revenue rise 53.9 percent year-on-year to INR 3.6 billion with its net loss narrowing 6.8 percent year-on-year to INR 1.3 billion in the 12 months ended 31 March, according to the industrial venture’s prospectus. For the three months ended 30 June, 2025, it reported a net loss of INR 576.5 million on revenue of INR 1.3 billion.

Horizon attributed its continuous loss to significant land acquisition and development cost as well as to the cost of borrowing to finance capital expenditures. It expects to deliver 5.8 million square feet of projects in the near term and 25.5 million square feet of projects over the next four to five years.

Blackstone sponsored India’s first REIT, with Embassy Office Parks debuting on Indian exchanges in 2019, before Mindspace Business Parks REIT was listed a year later and India’s first retail REIT, Nexus Select Trust debuted in 2023. 

Bengaluru Office Parks on Offer

Bagmane Prime Office REIT follows a more familiar India strategy for Blackstone with the Bengaluru-based developer having an approximately 16.1 million square foot portfolio of completed office park properties focused around its home city, with another 3.5 million square feet in the pipeline, according to the prospectus. 

Blackstone took unspecified minority stakes in Bagmane subsidiaries in December last year in what was positioned as a pre-IPO investment, with the REIT portfolio including six Bengaluru properties which average 97.9 percent occupancy. The REIT counts tech giants Google, Amazon, and Samsung among its largest occupiers.

Bagmane Prime Office REIT ’s sponsors plan to sell INR 30 billion in new units, with existing investors making available another INR 10 billion in units. 

In the 12 months ending 31 March, the REIT portfolio had INR 23.7 billion in revenue, which represents a 7.5 percent increase from the same period a year earlier. The trust booked nearly INR 9 billion in after tax profit for its most recent fiscal year, which was up from INR 8.1 billion for the preceding 12 months. 

With these REITs closing in on listings, Blackstone has continued to expand its bets on India real estate, including acquiring a 40 percent stake in residential builder Kolte-Patil in a $134 million bet in March.