Bagmane REIT Expansion: Chennai & Delhi Growth

Mumbai, Apr 30 (PTI) The IPO-bound Bagmane Prime Office REIT is aiming to expand and have properties in Chennai and Delhi markets in the future, a top official said on Thursday.

The company, backed by India's largest commercial realty investor Blackstone, is targeting a net operating income of Rs 2,675.8 crore in FY27.

Richard Hugh Andrew, chief executive officer of Bagmane Prime Office REIT, said the company is concentrated in Bengaluru at present, and sees good opportunities to grow and develop in Chennai and Delhi.

"We have the ability to grow and develop in Chennai and Delhi going forward, we'll continue to look at opportunities to grow in Bangalore," Andrew added.

The company expects higher net operating income from Bagmane Tech Park, worth Rs 751 crore in FY27, followed by Rs 659.9 crore from Bagmane World Technology Centre, Rs 594.1 crore from Bagmane Constellation Business Park, and Rs 211.8 crore from Bagmane Cosmos Business Park, according to the offer document.


The majority of the total net operating of Rs 2,532.4 crore is expected to come from commercial offices, and the remaining Rs 143.4 crore from solar parks, documents showed.

Over the long-term period, Bagmane Cosmos Business Park's net operating income is expected to rise to Rs 807.3 crore by FY30.

Net Operating Income (NOI) in a REIT measures the profitability of income-producing real estate.

Further, the company projects a revenue of Rs 3,008.2 crore in FY27 and takes it up to Rs 4,424.9 crore in FY30.

Bagmane Prime Office REIT is targeting to raise Rs 3,405 crore from the public in its initial public offer (IPO), which will be launched on May 5.

The issue includes Rs 2,390 crore by issuing fresh units, while selling unitholders will be offloading units worth up to Rs 1,015 crore via offer-for-sale.