Bagmane Prime Office REIT leases 1.2 million sq ft in Q2, occupancy rises to 99%

Mumbai: Bengaluru-based Bagmane Prime Office REIT has leased 1.2 million sq ft of office space in the September quarter, more than four times the 260,000 sq ft recorded in the previous quarter.

This has taken the REIT’s committed occupancy to 99% as demand from global capability centres (GCCs) accounted for 96% of the leasing activity.

It has reported revenue from operations of Rs 765 crore and net operating income (NOI) of Rs 684.4 crore for the quarter, with an NOI margin of 89%.


Gross leasing during the quarter included 0.6 million sq ft of pre-leasing, taking its gross leasing for the first half of financial year to 1.4 million sq ft. Leases were signed at an average rent of Rs 166 per sq ft per month, 2% above prevailing market rents.

“Leasing 1.2 million sq ft in a quarter, with half of it committed before the buildings are complete, tells you where global occupiers want to be…We signed leases above market rents…With our under-construction space already drawing commitments, the next phase of growth is taking shape,” said Hugh Andrew, CEO, Bagmane Prime Office REIT.

The leasing included 0.5 million sq ft of re-leasing at a 9% mark-to-market. The REIT recorded an 11% re-leasing spread across 0.8 million sq ft during the first half of the financial year. Half of the quarter’s leasing came from pre-commitments for office space yet to be delivered.

One of the largest consulting firms leased 326,000 sq ft, while OpenText leased 295,000 sq ft and Texas Instruments took 269,000 sq ft. A Fortune 500 semiconductor company leased 54,000 sq ft and Volvo took 11,000 sq ft. The REIT also concluded renewals for 150,000 sq ft with an AI-powered CRM platform and 52,000 sq ft with Mphasis.

The committed occupancy across its completed portfolio of 16.7 million sq ft stood at 99% as of September end, compared with 98.7% as of June end.

The board declared a distribution of Rs 1.55 per unit, aggregating Rs 527 crore for the quarter. The distribution for the first half of the financial year stood at Rs 10.4 billion, or Rs 3.05 per unit.

The REIT reported a gross asset value of Rs 41,600 crore and net asset value of Rs 113.6 per unit as of September end. Its loan-to-value ratio stood at 4%, with gross debt of over Rs 2,500 crore and net debt of Rs 1,700 crore.

The REIT’s portfolio also includes two hotels with a total of 607 keys in Bengaluru and a 72.5 MW (DC) solar asset under development. It has future development potential of 2 million sq ft of office space and a 47-plus million sq ft right of first offer pipeline across Bengaluru, Delhi and Chennai.