Bagmane Prime Office REIT IPO plans Chennai and Delhi expansion, targets FY27 NOI

Bagmane Prime Office REIT, which planned an IPO on May 5, said it was preparing to widen its footprint beyond Bengaluru. A senior executive said the REIT wanted to enter Chennai and Delhi over time. The Blackstone-backed office landlord also set financial goals for FY27 and FY30 in its offer document.

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The REIT targeted raising Rs 3,405 crore through the public issue. The IPO included Rs 2,390 crore through fresh units. Existing unitholders planned to sell units worth up to Rs 1,015 crore through an offer-for-sale. The fundraising plan was outlined ahead of the May 5 launch.

Bagmane Prime Office REIT expansion plans for Chennai and Delhi

Richard Hugh Andrew, chief executive officer of Bagmane Prime Office REIT, said operations were centred in Bengaluru now. The REIT said it saw room to add assets in other cities. "We have the ability to grow and develop in Chennai and Delhi going forward, well continue to look at opportunities to grow in Bangalore,\" Andrew added.

The REIT aimed for net operating income of Rs 2,675.8 crore in FY27. Net operating income in a REIT measured profit from rent and property income. The offer document also split expected income by asset type. Most of the NOI was projected to come from office properties.

Bagmane Prime Office REIT net operating income and asset mix

Documents said total net operating of Rs 2,532.4 crore was expected from commercial offices. Solar parks were projected to add Rs 143.4 crore. The offer document also listed asset-wise expectations for FY27. Bagmane Tech Park was expected to be the biggest contributor that year.

In FY27, Bagmane Tech Park was projected to deliver Rs 751 crore in net operating income. Bagmane World Technology Centre was expected at Rs 659.9 crore. Bagmane Constellation Business Park was projected at Rs 594.1 crore. Bagmane Cosmos Business Park was expected to add Rs 211.8 crore.

Over a longer period, the offer document showed a sharper rise for one asset. Bagmane Cosmos Business Parks net operating income was expected to reach Rs 807.3 crore by FY30. The projections set out how earnings could shift across the portfolio. They also highlighted the role of existing parks.

Bagmane Prime Office REIT revenue targets in FY27 and FY30

The REIT projected revenue of Rs 3,008.2 crore in FY27. It expected revenue to increase to Rs 4,424.9 crore in FY30. These estimates appeared alongside NOI targets in the offer document. The company said it would also keep scanning Bengaluru for further growth.

The offer document set out city expansion, IPO details, and forward income estimates for key assets. Bagmane Prime Office REIT said it remained focused on Bengaluru while evaluating Chennai and Delhi. The projections included a FY27 NOI target of Rs 2,675.8 crore and revenue targets through FY30.

With inputs from PTI