The Knowledge Realty Trust, a real estate investment trust (REIT) backed by US-based alternative investment management company Blackstone and Bengaluru-based Sattva Group, has filed its Initial Public Offering (IPO) papers with the Securities and Exchanges Board of India (SEBI) aiming to raise up to Rs 6,200 crore. The draft red-herring prospectus was filed on March 06, 2025.
Blackstone-Sattva Group’s REIT IPO to be the biggest REIT IPO yet
Reports vary of the Trust raising in the range between Rs 6,200 crore to Rs 8,000 crore but that will still make it the largest REIT IPO to land on India’s stock exchanges. Knowledge Realty Trust’s public issue will be the fourth Blackstone-backed REIT listing in the country.
Knowledge Realty Trust is a joint venture between Blackstone Inc and Sattva Group with the former holding a 55% stake and the latter a 45% stake in the Trust. The IPO launch will make the Knowledge Realty Trust the largest REIT with a gross asset value of Rs 60,000 crore. Currently, the Trust has around 48 million square foot of commercial space across major cities, of which 37 million square foot is completed and has 30 grade A office assets in 6 cities. The REIT’s real estate includes top office spaces such as one BKC, One International Centre and Once World Centre in Mumbai, Sattva Knowledge City and Sattva Knowledge Park in Hyderabad and Cessna Business Park, Exore Business Park and Sattva Global City in Bengaluru.
According to the sources, approximately 95% of the company’s portfolio’s value is focused in 3 cities of Bengaluru, Hyderabad and Mumbai. The most of the space has been leased with global capability centres and multinational companies.
How Previous REIT’s IPO Fared:
- Embassy Office Parks REIT in April 2019
It was India’s first REIT IPO raising around Rs 4,750 crore with its portfolio of about 33 million square feet of office and hospitality assets. This IPO had listed at a premium of 2.7% on NSE. - Mindspace Business Parks REIT in August 2020
This K Raheja Corp-backed REIT raised about Rs 4,500 crore upon its launch. Mindspace REIT had a portfolio of 29.5 million square feet of commercial space at the time. This REIT had a premium listing of 10%. - 3. Brookfield India Real Estate Trust in February 2021
Brookfield’s REIT IPO raised Rs 3,800 crore. It had a portfolio of 14 million commercial space. The IPO had a flat listing. - Nexus Select Trust in May 2023
The IPO raised Rs 3,200 crore upon its launch and the company boasts of a portfolio of 9 million square feet of retail spaces in 13 cities across the country. The company’s shares debuted at 4% premium on the bourses.
Noticeably, Blackstone had backed 3 of the 4 listed REITs in India. All of the previous REITs had a flat to premium listing.