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Knowledge Realty Trust (KRT), a REIT backed by Sattva Group and Blackstone, raised INR 1,620 crore from anchor investors ahead of its INR 4,800 crore IPO launch. Units were allotted at INR 100 each, with participation from LIC, Axis MF, Amundi, Tata MF, and others. KRT also secured INR 1,200 crore from institutional investors and raised INR 1,400 crore earlier in June. The REIT holds 46 million sq ft across key cities like Mumbai, Bengaluru, and Hyderabad, with flagship assets including One BKC and Knowledge City. With a gross asset value of INR 62,000 crore, KRT aims to grow through third-party acquisitions and joins India's growing REIT landscape.
Knowledge Realty Trust (KRT), a REIT jointly sponsored by real estate developer Sattva Group and global investment firm Blackstone, raised INR 1,620 crore from anchor investors at the start of this week. This fundraising comes just ahead of the public opening of its REIT IPO, setting the tone for one of the most significant real estate investment trust offerings in India. Advertisement
A circular released on the BSE website confirmed that 16.2 crore units were allocated to the anchor investors at INR 100 per unit. Participants in the anchor round included big names like Life Insurance Corporation of India, TATA AIG General Insurance Company, Nippon India Mutual Fund, Axis Mutual Fund, Tata Mutual Fund, Amundi, Wells Capital, Jhunjhunwala Trust, and 360 ONE.
Apart from the anchor allotment, the company secured an additional INR 1,200 crore through a strategic allocation to institutional investors. The IPO, which opened for public subscription this week, is entirely a fresh issue of units and is priced within a band of INR 95 to INR 100 per unit. The offering size has been finalized at INR 4,800 crore lower than the originally planned INR 6,200 crore-after the company raised INR 1,400 crore from investors in June.
Knowledge Realty Trust filed its draft red herring prospectus with SEBI in March as part of its strategy to monetise a prime office portfolio spread across India's top commercial hubs. With an impressive 46 million square feet of office space under its belt, spread across 29 assets in Mumbai, Bengaluru, and Hyderabad, KRT's asset portfolio includes landmark developments like One BKC, One World Center, Knowledge City, Knowledge Park, Cessna Business Park, and Sattva Softzone.
The gross asset value of the REIT is around INR 62,000 crore, placing it at the top of the REIT leaderboard in the country. Its net operating income was INR 3,432 crore in the previous fiscal year.
Blackstone and Sattva will retain around 80% stake in the REIT even post-listing. While Blackstone continues to be one of the largest foreign investors in Indian real estate, Bengaluru-based Sattva Developers has built a track record of delivering 74 million sq ft across commercial, residential, co-living, co-working, hospitality, and data centre verticals. A further 75 million sq ft is currently in the planning or development pipeline.
The sponsors have opted for a brand-neutral growth approach, planning to expand KRT's portfolio through third-party acquisitions as well, rather than just organic growth.
KRT enters a space currently occupied by four listed REITs in India: Brookfield India REIT, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Except for Nexus, which focuses on retail real estate, the others primarily hold rent-generating office properties. Together, these REITs manage over 126 million sq ft of Grade A office and retail space and have distributed over INR 21,000 crore to investors since their listing.
Source PTI
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