NEW DELHI: Knowledge Realty Trust (KRT), a realty firm, plans to invest Rs 700 crore over the next three years to develop 1.4 million sq ft of office space in Bengaluru as part of its expansion strategy, according to a company executive.
KRT is a real estate investment trust (REIT) backed by the Sattva Group and investment firm Blackstone.
In an interview with PTI, KRT’s CEO, Shirish Godbole, stated that the company is actively pursuing the acquisition of prime office assets to drive organic growth.
Godbole noted that KRT is performing well and expects to maintain its growth momentum in 2026-27 across key metrics, including Net Operating Income (NOI) and distributions to unitholders.
He emphasized strong demand for office space, primarily from foreign companies establishing Global Capability Centres (GCCs).
Godobole described the company’s portfolio as AI-resilient, with a significant portion of its workspaces occupied by GCCs and front office operations.
KRT boasts a portfolio of 29 premium office assets totaling 46.5 million sq ft, of which 37.2 million sq ft is completed, 2.6 million sq ft is currently under construction, and 6.6 million sq ft is designated for future development across six cities.
When asked about ongoing projects, Godbole mentioned that 1.2 million sq ft of office space is nearing completion, while construction on an additional 1.4 million sq ft has just commenced.
In addition to the upcoming Bengaluru project, Godbole revealed, “We are exploring acquisitions for inorganic growth and are active in the market.”
He highlighted that approximately 25% of its current portfolio is leased below market rates, providing significant potential for increased rental income.
KRT currently carries a debt of roughly Rs 12,000 crore.
Recently, KRT announced a distribution of Rs 716.6 crore to unitholders for the quarter ending March, bringing total distributions since its listing in August 2025 to Rs 2,101.9 crore, or Rs 4.74 per unit.
In the fourth quarter of FY2025-26, the company achieved gross leasing of 1.1 million sq ft, resulting in a total leasing of 3.5 million sq ft for the fiscal year and a portfolio occupancy rate of 92%.
NOI increased by 14% to Rs 1,053.3 crore during the January-March segment of the last fiscal year, compared to Rs 924.8 crore the previous year.
For the entire fiscal year 2025-26, NOI rose 18% year-on-year to Rs 4,048.4 crore.
Godbole stated, “As we enter FY27, we are equipped with strong operating momentum, a resilient balance sheet, and several visible growth opportunities.”
He anticipates leasing volumes in 2026-27 to remain consistent at approximately 3.5 million sq ft, incorporating both new leases and renewals.
Addressing potential concerns about demand for office spaces, Godbole remarked, “We boast an AI-resilient portfolio characterized by three main attributes: 45% of gross rentals from GCC occupiers, negligible exposure to traditional IT service sectors, and 31% of portfolio value in front office assets.”
