Knowledge Realty Trust (KRT), a Real Estate Investment Trust (REIT) sponsored by Bengaluru-based Sattva Group and global investment giant Blackstone, has received approval from the Securities and Exchange Board of India (SEBI) to launch its much-anticipated ₹4,800-crore initial public offering (IPO). The issue is likely to open for subscription in the first week of August, marking a significant development in India’s commercial real estate and capital markets landscape.
This approval follows KRT's earlier fundraising of ₹1,400 crore from anchor investors last month, ahead of the main public issue. KRT had filed its Draft Red Herring Prospectus (DRHP) with SEBI in March this year as part of its plans to monetise a portfolio of Grade-A commercial office spaces spread across multiple Indian cities.
The REIT's total gross asset value stands at an estimated ₹62,000 crore, which will make it India’s largest REIT by asset size once listed. The trust comprises a portfolio of 46 million sq ft across 29 income-generating office properties located in prime business districts of Mumbai, Bengaluru, and Hyderabad. Notable assets under its ownership include One BKC and One World Center in Mumbai, Cessna Business Park and Sattva Softzone in Bengaluru, and Knowledge City and Knowledge Park in Hyderabad.
Although Sattva Group declined to comment on the development, people familiar with the matter confirmed that the company would begin roadshows this week to attract institutional and retail investors. The price band for the IPO is expected to be announced around August 30.
As per market analysts, the REIT IPO is expected to receive strong demand from institutional investors, given the scale and quality of assets. The portfolio offers long-term rental yield potential, backed by tenants from the technology, financial services, and global consulting sectors. In the last fiscal year, KRT reported a net operating income of ₹3,432 crore, signaling robust income visibility.
Post-issue, Blackstone and Sattva will retain approximately 80% stake in the REIT, continuing to guide its operations and strategic growth. The sponsors have also decided to adopt a brand-neutral approach to allow for inorganic expansion through third-party acquisitions—a strategy aimed at scaling up the portfolio swiftly without being constrained by branding considerations.
There are currently four listed REITs in India—Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Among these, Nexus is focused on retail spaces, while the others, including KRT, derive revenues largely from rent-yielding office portfolios.
Industry insiders see this move as a sign of increasing investor confidence in the Indian commercial real estate sector, especially with the growing popularity of REITs as a retail-friendly asset class offering regular dividend income and capital appreciation.
Sattva Group has developed 74 million sq ft of real estate to date across residential, commercial, co-living, co-working, hospitality, and data center verticals in seven cities. It has an additional 75 million sq ft in the pipeline.
With SEBI’s green light and favorable market conditions, KRT’s REIT IPO is expected to not only set new benchmarks for fundraising but also offer retail investors exposure to one of the most diversified commercial real estate portfolios in the country.
Image source- freepik.com
