Knowledge Realty Trust Gets SEBI Nod for Rs 4,800 Crore REIT IPO

 

Knowledge Realty Trust (KRT), backed by real estate major Sattva Group and global investment firm Blackstone, has received approval from the Securities and Exchange Board of India (SEBI) to launch its public issue of Real Estate Investment Trust (REIT) to raise Rs 4,800 crore. This move marks a significant milestone for the firm as it prepares to enter the capital markets with its maiden REIT offering in the first week of August.

 

Prior to the SEBI nod, KRT had already raised Rs 1,400 crore from anchor investors, bringing the total expected capital to Rs 6,200 crore. The company is set to begin its roadshow this week, with the price band announcement likely on August 30.

 

The REIT aims to monetise a portfolio of 30 high-quality office assets spread across major Indian cities, including Mumbai, Bengaluru, and Hyderabad. These include marquee properties such as One BKC and One World Center in Mumbai, Knowledge City and Knowledge Park in Hyderabad, and Cessna Business Park and Sattva Softzone in Bengaluru.

 

Once listed, Knowledge Realty Trust will become India’s largest REIT by gross asset value, estimated at around Rs 62,000 crore. The trust owns more than 46 million sq ft of office space across 29 assets in six major cities. In FY24, KRT reported a net operating income of Rs 3,432 crore.

 

Blackstone and Sattva will jointly retain approximately 80% ownership in the REIT post-listing. The sponsors have opted for a brand-neutral strategy to facilitate future growth through third-party acquisitions.

 

Also Read: Sattva Group Discloses Prime Housing Plots in Mandya - Sattva Kaveri Siri

 

 

KRT will join four existing listed REITs in India Brookfield India REIT, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Among these, Nexus is the only one with a retail-focused portfolio, while the others are office-asset backed.

 

Bengaluru-based Sattva Group, a diversified real estate developer, has completed over 74 million sq ft of construction and has another 75 million sq ft in various stages of planning and execution. Partner Blackstone continues to expand its footprint in Indian real estate, further strengthening KRT's growth potential.

 

With this listing, the REIT market in India is poised for further expansion, offering institutional and retail investors access to high-quality commercial real estate backed by strong income potential.