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Knowledge Realty Trust, backed by Sattva Group and global investment giant Blackstone, is all set to launch its INR 4,800 crore Real Estate Investment Trust (REIT) Initial Public Offering (IPO). The REIT recorded a 19% growth in net operating income (NOI), touching INR 3,432.26 crore in the previous financial year. With 46.3 million sq ft in total leasable space and an expected Gross Asset Value (GAV) of INR 61,998.9 crore by March 2025, KRT is poised to become the largest office REIT in the country by both GAV and NOI.
Knowledge Realty Trust, a REIT co-sponsored by Bengaluru-based Sattva Group and global investment firm Blackstone, has reported a 19% year-on-year increase in its net operating income (NOI), which reached INR 3,432.26 crore for the last financial year, up from INR 2,882.08 crore in the previous fiscal. Advertisement
The REIT is preparing to launch its public offering in the coming days, aiming to raise INR 4,800 crore through a fresh issue of units. The price band for the issue has been fixed at INR 95 to INR 100 per unit. The offer is part of its broader plan to monetise 30 high-quality office assets spread across key Indian cities.
Knowledge Realty Trust had initially planned to raise INR 6,200 crore through its IPO. However, after securing INR 1,400 crore from anchor and institutional investors recently, the overall issue size has been trimmed to INR 4,800 crore. This pre-IPO investment was a strategic move to build confidence among retail and institutional investors ahead of the main listing.
In its red herring prospectus, the company stated that following the listing, it expects to emerge as the largest office REIT in India, backed by a projected Gross Asset Value (GAV) of INR 61,998.9 crore and an NOI of INR 3,432.26 crore by March 2025. Its real estate portfolio spans 46.3 million square feet of leasable area, comprising 37.1 million sq ft of completed projects, 1.2 million sq ft under construction, and an additional 8 million sq ft in the pipeline for future development.
The proposed listing marks a significant milestone for India's growing REIT ecosystem. KRT will join the league of existing REITs in the country, which include Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. While the first three are backed by income-generating office assets, Nexus primarily focuses on retail properties.
Sattva Developers, the domestic partner in the REIT, has already delivered 74 million sq ft of space across seven cities in sectors ranging from commercial and residential to hospitality and data centres. Another 75 million sq ft is currently under various stages of planning and development. On the other hand, Blackstone continues to be one of the largest foreign investors in India's commercial real estate, playing a key role in deepening institutional participation in the sector.
Notably, the two sponsors Sattva and Blackstone intend to grow the REIT portfolio further through inorganic expansion. The brand-neutral approach aims to enable third-party acquisitions, allowing the platform to scale swiftly without brand dependency.
Source PTI
5th Jun, 2025
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