Bagmane Prime Office REIT pre-leases 60% of Cosmos expansion

Bagmane REIT pre-leased 60% of its 1 million-square-foot Cosmos expansion by September 30, 2026, after leasing 1.2 million square feet in Q2 FY27. Of the quarterly leasing, 600,000 square feet, or half, was for space under development, providing commitments before the two Cosmos buildings are completed.

What did Bagmane REIT lease in Q2 FY27?

Bagmane REIT leased 1.2 million square feet in Q2 FY27, more than four times its leasing success in Q1 FY27, taking gross leasing in H1 FY27 to 1.4 million square feet. Management presented the increase as evidence of tenant demand and global capability centre, or GCC, commitments during 2026.

The quarterly total included new commitments from a big four consulting firm for 326,000 square feet, OpenText for 295,000 square feet, Texas Instruments for 269,000 square feet and a Fortune 500 semiconductor company for 54,000 square feet. Volvo also leased an additional 11,000 square feet, while renewals with a leading artificial intelligence-powered customer relationship management platform and emphasis totalled around 202,000 square feet.

The comparison shows that Q2 FY27 accounted for most of the 1.4 million square feet leased in H1 FY27. The 1.2 million square feet signed in the quarter included 500,000 square feet of re-leased space and 600,000 square feet of space under development, with the remaining activity not separately categorised in the call.

Why did GCCs account for most of Bagmane REIT's leasing?

GCCs accounted for 96% of Bagmane REIT's 1.2 million square feet of Q2 FY27 leasing, making them the principal source of quarterly demand. Across the portfolio, GCCs represent 93% of tenants, while foreign multinational corporations account for 98% and Fortune 500 companies account for 64%.

Management cited JLL data showing that GCC leasing in India rose 30.6% year on year in the first nine months of calendar 2026 and comprised 43% of office demand. Foreign occupiers and multinationals made up 62% of leasing, a seven-quarter high, while Bengaluru held a 28% share of India's 61 million square feet of gross office leasing over the same nine-month period.

JLL estimates that India has more than 3,700 GCCs and could have between 4,700 and 4,800 by FY30, according to management. This occupier base could employ up to 2.7 million people and occupy more than 300 million square feet of Grade A space, while management said around 65% of Fortune 500 companies are yet to establish a GCC in India.

JLL expects Indian gross office leasing to average 88 million square feet annually from 2026 to 2028, compared with average new supply of 68 million square feet, management said. Management also linked its current occupier conversations to expansion in artificial intelligence development, semiconductor design and advanced engineering.

What is pre-leased at Bagmane REIT's Cosmos project?

Bagmane REIT has pre-leased 60% of the 1 million square feet under construction at Cosmos Business Park, following 600,000 square feet of Q2 FY27 leasing for unfinished space. The programme comprises Ceres, which is 54% pre-leased, and Aurora, which is 63% pre-leased.

Ceres is on track for completion in Q3 FY27, with finishing work under way, while Aurora is on track for Q4 FY27 and has begun façade work. Aurora's 63% pre-leased share is 9 percentage points above Ceres's 54%, although both buildings form part of the same Cosmos development programme.

The remaining uncommitted share of Cosmos was 40% as of September 30, 2026, based on the disclosed 60% pre-leased figure. Management said it had a pipeline for the remaining space but did not disclose its tenants, rents or the timing of further commitments.

Beyond Cosmos, Bagmane REIT reported 2 million square feet of future development potential within its existing parks. It is also constructing two hotels on Outer Ring Road, where all three basements were completed in Q2 FY27; the completed project is planned to have 607 keys and a convention facility.

How are Bagmane REIT's rents and occupancy changing?

Bagmane REIT signed Q2 FY27 leases at an average rent of Rs 166 per square foot per month and said these leases were above prevailing market rents. Re-leasing of 500,000 square feet in the quarter generated a 9% mark-to-market increase, while the 800,000 square feet re-leased in H1 FY27 generated an 11% increase.

The H1 FY27 re-leasing increase was 2 percentage points higher than the Q2 FY27 increase, but it covered 800,000 square feet rather than the quarter's 500,000 square feet. Since FY23, management said average re-leasing spread has been 15% and 91% of leasing has come from existing tenants remaining or expanding.

Committed occupancy rose to 99% as of September 30, 2026, from 98.7% in June, across Bagmane REIT's completed 16.7 million-square-foot portfolio. The weighted average lease expiry was 6.1 years, and management said committed occupancy has remained above 94% since March 2021, while rentals have grown at a 5.9% compound annual growth rate.

The leasing activity coincided with Q2 FY27 revenue from operations of Rs 765 crore and net operating income, or NOI, of Rs 684.4 crore, for an 89% NOI margin. For H1 FY27, revenue from operations was Rs 1,500 crore and NOI was Rs 1,340 crore at a 90% margin; management identified contractual escalations, re-leasing mark-to-market and development income as growth mechanisms.

Conclusion

Bagmane REIT combined faster leasing with pre-commitments for unfinished capacity in Q2 FY27. Its 1.2 million square feet of leasing was 96% GCC-led, while 600,000 square feet was for space under development and committed occupancy increased from 98.7% in June to 99% in September.

The next disclosed milestones are Ceres's planned Q3 FY27 completion and Aurora's planned Q4 FY27 completion, with the buildings currently 54% and 63% pre-leased, respectively. Management also identified 18% mark-to-market potential in in-place rents and said 26% of gross contracted rentals are due for renewal by FY30.