Sign In
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
Kolkata: Following the bumper year in 2025, the IPO market in 2026 is expected to be buoyant in 2026. There are already reports of public issues that will be raising well over Rs 1 lakh crore. Now we have a report of a REIT IPO too. Bagmane Prime Office REIT, which is backed by Bengaluru-based realty firm Bagmane Group, has filed a draft paper with Sebi to float an IPO to mobilise up to Rs 4,000 crore.
REITs or Real Estate Investment Trusts are investment vehicles that own and/or operate income-generating real estate. These instruments help channelise household savings into commercial real estate, which allows investors to profit from the gains of real estate without having to purchase them directly which involves huge amounts and is beyond the reach of common individuals.
According to the DHRP filed with the SEBI, Bagmane Office REIT the IPO will comprise both fresh shares and an OFS part. The fresh issue of units will aggregate up to Rs 3,000 crore while the OFS segment will garner up to Rs 1,000 crore, said reports. The net proceeds will be used to acquire Luxor at Bagmane Capital Tech Park. It spans one million sq ft and the cost on this account is Rs Rs 1,775 crore. The company will utilise an amount up to Rs 1,025 crore to partially fund the acquisition of 93% stake in Bagmane Rio. Bagmane Rio is the owner of the 1.1 million sq ft Bagmane Rio Business Park.
Bagmane Office REIT can boast of a portfolio of six Grade A+ business parks. The total area under these park is 20.3 million sq ft out of which 16.1 million sq ft is completed area and it includes 0.7 million sq ft of two under-construction hotels. The cumulative rooms of these hotels are 607 keys. Global investment firm Blackstone has reportedly purchased units of the REIT in a pre-IPO round. It was also reported that as of June 30 this year, the portfolio has a committed occupancy of 97.9%. The REIT's Gross Asset Value was recorded at Rs 38,790 crore as on June 30 this year.
Sebi has given the REIT market a shot in the arm by declaring it on par with equities. This has allowed equity mutual funds to invest in units or REIT. Right now there are five listed REITs in India. These are Sattva Group and Blackstone-backed Knowledge Realty Trust (KRT), K Raheja Corp-backed Mindspace Business Parks REIT, Brookfield India Real Estate Trust, Embassy Office Parks REIT and Nexus Select Trust. Out of these five listed REITs, only Nexus Select Trust is backed by rent-yielding shopping malls and all the other four have office REITs.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, InvITs and any form of alternative investment instruments and crypto assets.)
