Bengaluru-based Bagmane Prime Office real estate investment trust (REIT) has filed for an initial public offering (pdf) worth INR 40 bn (USD 445.6 mn), and for MENA investors active in Indian commercial real estate, the timing is telling.

The breakdown: The trust intends to sell new units worth INR 30 bn (USD 334.5 mn), while investors will sell INR 10 bn (USD 111.1 mn) worth of existing units, according to the draft prospectus. Up to 75% of the allocation is reserved for institutional investors, with the 25% remaining up for grabs by non-institutional bidders.

Where’s the money going? Funds from the issuance will be used to acquire more prime office assets, including an INR 17.7 bn (USD 197 mn) acquisition of Luxor at Bagmane Capital Tech Park and an INR 10.2 bn (USD 113 mn) investment for a 93% stake in the entity owning Bagmane Rio Business Park.

A gateway for Gulf investors? Gulf institutional capital is increasingly underwriting the tech-hub demand. Sovereign funds like the Abu Dhabi Investment Authority (Adia) and KSA’s Public Investment Fund are pivoting to Indian REITs for stable yields, which comfortably surpass the global benchmarks of 4-5%. Adia’s operational launch in GIFT City last year specifically facilitates high-value, tax-efficient real estate allocations.

Lead managers: JM Financial, Kotak Mahindra Capital, Axis Capital, IIFL Capital Services, SBI Capital Markets, 360 ONE WAM, and HDFC Bank.

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