New Delhi, May 5 -- Bagmane Prime Offices REIT, a real estate investment trust backed by private equity firm Blackstone, has raised Rs 1,149 crore ($120.5 million) from anchor investors ahead of its initial public offering (IPO) that opened for subscription Tuesday.
The REIT allocated 11.49 crore shares to anchor investors, including global and domestic firms, at Rs 100 per unit.
The anchor book saw participation from pension and mutual funds such as SBI Pension, SBI Life, WhiteOak Capital, UTI Mutual Fund, Nippon Life, and Edelweiss, among others. Of the total allocation, 27.93% was subscribed by nine domestic mutual funds across 17 schemes.
Last week, the REIT raised Rs 850 crore in a pre-IPO round from investors such as 360 ONE, UTI Mutual Fund, the Jhunjhunwala family, and Neo Asset, according to the offer document.
The IPO is sized at Rs 3,405 crore ($360 million), comprising a fresh issue of shares worth Rs 2,390 crore and an offer-for-sale of Rs 1,015 crore by Blackstone.
The issue will close on May 7 and the REIT is expected to list by May 15. It could command a valuation of around Rs 34,000 crore ($3.63 billion).
Bagmane Developers Pvt Ltd, the REIT's holding company, will use proceeds from the fresh issue to partly fund the acquisition of Luxor, part of the Bagmane Capital Tech Park; and Bagmane Rio Pvt Ltd, which owns Bagmane Rio Business Park.
Blackstone struck a deal in late 2024 to acquire stakes in Bagmane Developers, the group's flagship, and Bagmane Rio. While financial terms were not disclosed, VCCircle reported a total investment of Rs 1,439 crore ($167 million) across the two companies, with the bulk going into Bagmane Developers. Blackstone holds nearly 7% in each of the two entities.
Bagmane REIT will be the sixth publicly-listed REIT in India after Knowledge Realty Trust, Embassy Office Parks REIT, Mindspace REIT, Brookfield India REIT, and Nexus Select Trust.
Except for Brookfield India REIT, Blackstone has sponsored or backed all listed REITs in India so far. The firm has fully exited Embassy and Mindspace REITs and partially exited Nexus. Overall, Blackstone has mopped up over $2.8 billion from these exits, VCCircle reported in August 2024.
Bagmane REIT's portfolio comprises six business parks with a total area of 20.3 million square feet, including 19.6 million sq ft of leasable area. These include World Technology Centre, Constellation Business Park, Rio Business Park, Luxor at Bagmane Capital Tech Park, Bagmange Tech Park, and Bagmane Cosmos Business Park.
The portfolio also includes two under-construction hotels with a total 607 keys, as well as four solar power projects with an aggregate annual capacity of 164.4 MW.
Published by HT Digital Content Services with permission from VC Circle.