It would be supported by a 47.2-million-square-foot (msf) right-of-first-offer (ROFO) pipeline from its sponsor — Bagmane Group in Bengaluru — even as it continues to evaluate acquisitions across India’s top six office markets.
The Reit currently has 19.6 msf of leasable commercial office space in its portfolio. It also sees opportunities in Chennai and Delhi as it looks to expand its portfolio amid sustained demand for office space, particularly from global capability centres (GCCs).
“We have an incredibly low gearing of under 5 per cent, a talented team, and a fantastic set of pipeline opportunities that will allow us to probably double the size of the portfolio in the next seven to eight years,” Richard Hugh Andrew, chief executive officer (CEO), Bagmane Prime Office Reit, told Business Standard.
The Reit’s portfolio had a gross asset value (GAV) of just over ₹40,000 crore as of December 2025.
Bagmane Prime Office Reit, which was listed in May, maintained committed occupancy at 98.7 per cent during Q1 of FY27, and the management expects it to be robust. “In terms of acquisitions, being opportunistic, we keep looking at accretive acquisitions across the core six cities where commercial real estate is moving. If we come across an acquisition that is right for our portfolio and accretive for the unitholders, we will go for it,” said Ashay Shah, chief financial officer (CFO), Bagmane Prime Office Reit.
The Reit is also adding 1 msf of office space within its existing portfolio by the end of the current financial year (FY27). One building is expected to be completed in the third quarter and the other in the fourth quarter. Despite its high occupancy, the Reit said demand for office space remains strong. Andrew said nearly half of its tenant partnerships are built-to-suit arrangements. Demand from smaller tenants, particularly startup GCCs, has been more spontaneous, he said. The company is also seeing a growing number of domestic companies in the GCC segment.
Bengaluru continues to be a key demand market. Andrew said the city typically sees requests for proposals (RFPs) covering around 10 msf every quarter, with requirements often starting at 500,000 square feet. “We haven’t seen a significant drop in interest. Our conversations remain very buoyant. A lot of what we talk about is not consolidation; it is about the growth of business, particularly with the GCCs,” he said. On geopolitical tensions, Shah said the Reit didn’t see the RFPs decreasing, but there was “kind of a little bit of a pause in all the large deals” in March and April.
“But now, again, we are seeing them going ahead full swing, and the demand is quite robust,” Shah added.
Earlier this week, Bagmane Prime Office Reit reported 16 per cent year-on-year (Y-o-Y) growth in net operating income (NOI) to ₹660 crore for the first quarter of FY27 (Q1FY27). The Reit declared its maiden distribution to unitholders at ₹1.5 per unit, amounting to ₹510 crore.
Bagmane Reit plans to spend around ₹700-800 crore on development during FY27.
Overall, more than ₹3,000 crore of construction-related expenditure has been planned across the portfolio over the next 3.5-4 years to develop 3 msf of assets.
Of the 3 msf remaining for development, 1 msf is currently under development, and 2 msf planned as future development.
The Reit is also developing two hotels with a combined 607 keys and a solar park. Shah said the hotels were being developed as amenities to enhance the business parks rather than as a shift towards hospitality.
Bagmane has significant balance-sheet headroom for acquisitions, according to the management. Its loan-to-value (LTV) ratio is around 4 per cent, and Shah said the Reit would be comfortable with 20-25 per cent LTV over the long term.
During the quarter, Bagmane raised around ₹1,500 crore of debt, of which ₹1,000 crore was used to refinance higher-cost debt at the special purpose vehicle (SPV) level.
With a large sponsor pipeline, low leverage and strong tenant demand, the Reit expects its expansion to be driven both by organic development and potential acquisitions that are accretive to unitholders.
“We continue to look at the Indian economy and the main driver and talent is clearly right up there. It is a much more stable investment environment,” Andrew said.
