Knowledge Realty Trust (KRT), backed by Sattva and Blackstone, is setting a new benchmark in India’s real estate investment trust sector. With a diverse portfolio of Grade A office assets, KRT is positioned as the largest REIT in India by net operating income (NOI) and gross asset value (GAV).
Value of IPO draft document is rs 7000 crores. Blackstone will hold a 55% equity stake in Knowledge Realty Trust, with Sattva holding 45% . The REIT’s projected net operating income (NOI) for FY26 is expected to be rs 7652 crores.
- KRT boasts 48 million sq. ft. of office space across six cities.
- The portfolio is 90% leased to marquee tenants, including multinational corporations.
Diverse Portfolio with Strategic Locations
Knowledge Realty Trust’s portfolio spans an impressive 48 million square feet, making it India’s most geographically diverse office REIT. The trust has successfully completed 37 million square feet across 30 Grade A office assets located in six major cities. Despite this wide geographic spread, nearly 95% of the total asset value is concentrated in India’s top three office markets: Bengaluru, Hyderabad, and Mumbai. This strategic positioning allows KRT to benefit from high demand in these rapidly developing urban centers.
CEO Shirish Godbole emphasized, “Our focus on premier office locations allows us to attract leading global companies.” With 90% of the portfolio leased out to high-profile tenants—76% of whom are multinational corporations—the trust’s business model is built on substantial rental income. Among the key assets are Sattva Knowledge City and Sattva Knowledge Park, both of which contribute significantly to KRT’s revenue stream. Furthermore, the ongoing construction of the iconic Image Tower in Hyderabad signifies KRT’s commitment to enhancing its portfolio with landmark properties.
Financial Strength and Growth Potential
Knowledge Realty Trust is not only a leader in the REIT sector but also showcases impressive financial health. The trust projects a compound annual growth rate (CAGR) of 18% in net operating income (NOI) from FY25 to FY27, supported by its low loan-to-value (LTV) ratio and a robust right of first offer (ROFO) pipeline of seven million square feet across four identified assets for future growth.
Quaiser Parvez, COO of KRT, stated, “Our financial metrics demonstrate our resilience and growth potential in a dynamic market.” The weighted average lease expiry (WALE) stands at 8.6 years, indicating long-term lease stability. Additionally, KRT is poised to capitalize on the growing demand for Grade A office space, which is anticipated to reach a robust 82 million square feet by 2024, outpacing supply.
Focus on Sustainability and Strategic Partnerships
Sustainability is at the core of Knowledge Realty Trust’s operational philosophy. The trust has made significant investments in renewable energy, boasting 63 MW of solar power generation, alongside a commitment to green buildings, waste recycling, and energy efficiency. This dedication to sustainability not only aligns with global trends but also enhances the long-term viability of KRT’s assets.
Blackstone’s partnership with KRT further solidifies its market presence, continuing a successful run of public listings in the Indian real estate sector. “Our collaboration with Sattva reflects a shared vision for transforming the Indian real estate landscape,” noted Tuhin Parikh from Blackstone. This partnership marks the fifth public listing of Blackstone’s India real estate business, following the successes of three REITs and one C-Corporation.
Future Outlook and Industry Implications
Looking ahead, Knowledge Realty Trust is well-positioned to capitalize on India’s robust economic growth. As the country emerges as the global capital for outsourcing, the demand for high-quality office space will continue to rise. With a young, skilled workforce and cost advantages over global commercial hubs, India is set to experience unprecedented growth in the real estate sector.
Industry expert Bijay Agarwal from Sattva Group stated, “The fundamentals of the Indian economy, combined with our strategic positioning, make KRT a compelling investment opportunity.” The outlook for KRT remains positive, with expectations of continued expansion and a focus on innovation in the real estate sector.
