NEW DELHI: Knowledge Realty Trust, backed by the Sattva Group and Blackstone, has received approval from SEBI to initiate a public offering for its REIT, aiming to raise ₹4,800 crore.
Last month, Knowledge Realty Trust (KRT) successfully gathered ₹1,400 crore from investors as part of the preparations for its first REIT public offering.
In early March, KRT filed a draft red herring prospectus (DRHP) with SEBI to launch an initial public offering (IPO) and list the REIT on stock exchanges.
This initiative is designed to monetize its portfolio of 30 premium office assets located in major cities.
According to sources, KRT has secured SEBI approval to proceed with its REIT-IPO, expected to enter the market in the first week of August. The company plans to raise ₹4,800 crore through this public offering, having already raised ₹1,400 crore from earlier investors.
The spokesperson for Sattva Group declined to comment.
The roadshow for the offering will commence this week, with the price band likely to be disclosed on August 30.
KRT is positioned to become India’s largest REIT by gross asset value, estimated at around ₹62,000 crore. Its net operating income was ₹3,432 crore in the previous fiscal year.
Currently, KRT owns over 46 million sq ft of office space across 29 properties in six cities, including Mumbai, Bengaluru, and Hyderabad.
The assets in its portfolio feature One BKC and One World Center in Mumbai, Knowledge City and Knowledge Park in Hyderabad, as well as Cessna Business Park and Sattva Softzone in Bengaluru.
Blackstone and Sattva will maintain approximately 80% ownership of the REIT. Presently, there are four listed REITs in India: Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust.
Unlike the other three REITs backed by income-generating office spaces, Nexus Select Trust focuses on a significant portfolio of retail real estate.
Bengaluru-based Sattva Developers has developed 74 million sq ft across seven Indian cities in sectors including commercial, residential, co-living, co-working, hospitality, and data centers, with an additional 75 million sq ft in planning or execution stages.
Blackstone, a leading global investment firm, holds a substantial stake in the Indian real estate market.
The sponsors have chosen a brand-neutral strategy to expand the KRT portfolio through third-party acquisitions.
The existing four REITs collectively encompass over 126 million sq ft of Grade A office and retail space throughout India. Since their inception, these REITs have returned over ₹21,000 crore to unitholders.
