Blackstone-Backed Bagmane REIT Gains 3.7% in India Trading Debut After $360M IPO

Blackstone-backed Bagmane Prime Office REIT climbed in its India trading debut after raising INR 34.1 billion ($360 million) in the country’s latest real estate trust listing.

The REIT’s units closed Thursday at INR 103.66, up 3.7 percent from the INR 100 issue price, after listing at INR 103.50. The debut valued the Bengaluru-based office trust at more than INR 352 billion.

The offering comprised a fresh issue of INR 23.9 billion and a INR 10.2 billion offer for sale by Blackstone’s BREP Asia III opportunistic real estate fund, according to Bagmane REIT’s offer document. The IPO was subscribed 23.7 times, including more than 25 times in the institutional tranche, with over 200,000 applications marking a record for an Indian REIT IPO.

“A successful IPO like this will give confidence to the wider REIT market,” Asheesh Mohta, head of India real estate at Blackstone, told the Mint website ahead of the offering. “Commercial office space remains attractive because it delivers stable rent and cash flows. India remains a long-term opportunity for us and we will continue to look at new investments and exits based on the nature of our funds.”

Global Tech Tenants

Bagmane REIT owns six Grade A-plus business parks across Bengaluru, spanning 16.6 million square feet (1.5 million square metres) of completed leasable space and 3.5 million square feet in the pipeline. The portfolio had 98.8 percent committed occupancy as of December.

The trust’s assets consist of Bagmane World Technology Centre, Bagmane Constellation Business Park, Bagmane Rio Business Park, Bagmane Tech Park, Bagmane Cosmos Business Park and the Luxor office campus at Bagmane Capital Tech Park. Tenants include global tech heavyweights Amazon, Google, Nvidia and Samsung.

The IPO proceeds are earmarked in part for acquiring the 1 million square foot Luxor and a 93 percent stake in Bagmane Rio Business Park, a 1.1 million square foot complex that houses one of Google’s largest offices globally.

The REIT’s strategy centres on retaining multinational tenants, offering built-to-suit and managed office solutions, and creating expansion options within its portfolio, according to the offer document.

Investors in the trust’s anchor allocation of IPO units include SBI Pension Fund schemes of India’s National Pension System, SBI Life Insurance, WhiteOak Capital funds and mutual funds managed by Nippon Life India and Edelweiss.

Private equity titan Blackstone took minority stakes in subsidiaries of Bengaluru-based builder Bagmane Group in December 2024, in what was positioned as a pre-IPO investment. Bagmane REIT is the first of two Blackstone-linked India listings expected this year, with Horizon Industrial Parks having filed for a proposed INR 26 billion IPO that has yet to open for subscription.

Thursday’s debut makes Bagmane India’s sixth listed REIT, following four vehicles launched by Manhattan-based Blackstone — Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust and Knowledge Realty Trust — as well as Brookfield India Real Estate Trust, sponsored by the Canadian asset management giant.

Digital Drive

Blackstone is also tapping public markets for property vehicles outside India this week, with Blackstone Digital Infrastructure Trust raising $1.75 billion in a US IPO to acquire leased data centres benefiting from AI demand.

The IPO of the NYSE-listed REIT underscores Blackstone’s growing focus on digital infrastructure after the firm acquired Asia Pacific data centre operator AirTrunk in late 2024 in a deal valuing the business at more than $16 billion.

AirTrunk is moving ahead with plans for a Singapore-listed REIT, with market sources telling Mingtiandi that the IPO could raise $1.5 billion and value the trust at roughly $2.5 billion.