Blackstone Inc. and Sattva Group have officially filed the draft offer document for the Knowledge Realty Trust (KRT), aiming for a record Rs 7,000 crore Real Estate Investment Trust (REIT) IPO. This offering is set to be the largest in India by net operating income (NOI) and gross asset value (GAV).
- Projected net operating income to reach Rs 2,946 crore by FY27.
- KRT portfolio includes 48-50 million sq ft of commercial space.
Key Details of Knowledge Realty Trust IPO
The Knowledge Realty Trust IPO, valued at Rs 7,000 crore, is positioned to be a landmark event in the Indian REIT market. The draft red herring prospectus (DRHP) reveals that Blackstone will retain a 55% equity stake, while Sattva Group will hold 45%. The IPO is projected to raise Rs 6,200 crore, primarily aimed at debt repayment and future acquisitions. This“ IPO reflects our commitment to sustainable growth in India’s commercial real estate sector,” stated Shirish Godbole, CEO of Knowledge Realty Trust. The remaining Rs 800 crore will cover general corporate purposes and associated expenses, adhering to SEBI regulations that limit such costs to 10% of net proceeds.
Strategic Portfolio and Growth Projections
The portfolio of Knowledge Realty Trust includes approximately 48-50 million sq ft of prime commercial office space located in major cities such as Mumbai, Bengaluru, Hyderabad, and Pune. With a current occupancy rate of 90%, the tenants include 76% multinational corporations (MNCs) and 45% global capability centers (GCCs). Projections indicate an 18% compounded annual growth rate (CAGR) in NOI from FY25 to FY27, along with a mark-to-market (MTM) upside potential of 15%. The gross asset value (GAV) of the portfolio is estimated at Rs 59,400 crore, which underscores the robustness of KRT’s asset base.
Future Implications and Market Impact
The Knowledge Realty Trust IPO is expected to reshape the landscape of the Indian REIT market. With a low loan-to-value (LTV) ratio and a planned pipeline of 7 million sq ft for future acquisitions, KRT is strategically positioned for growth. Following the IPO, anticipated debt repayments could reduce total indebtedness to below 21% of its GAV at the time of listing. “This IPO not only signifies growth for Blackstone and Sattva but also sets a precedent for future REITs in India,” noted Quaiser Parvez, COO of Knowledge Realty Trust. As the market anticipates this significant offering, it will likely attract a diverse range of institutional and retail investors, fostering broader participation in India’s burgeoning real estate investment landscape.
