KRT IPO: Sattva-Blackstone backed REIT gets Sebi nod for Rs 4,800 crore raise; public issue likely to hit markets early August

Knowledge Realty Trust (KRT), a REIT sponsored by Sattva Group and Blackstone, has received approval from the Securities and Exchange Board of India (Sebi) to go ahead with its Rs 4,800-crore initial public offering.

The public issue is expected to hit the market in the first week of August, according to PTI citing sources.Ahead of the IPO, KRT has already mobilised Rs 1,400 crore from institutional investors. The company had filed its draft red herring prospectus (DRHP) in March this year, as part of its plan to monetise 30 premium office assets spread across key Indian cities, ANI reported.The REIT owns over 46 million sq ft of rent-yielding office properties across 29 locations in Mumbai, Bengaluru and Hyderabad.

Notable assets include One BKC and One World Center in Mumbai, Knowledge City and Knowledge Park in Hyderabad, and Cessna Business Park and Sattva Softzone in Bengaluru.Sources said the roadshow will begin this week, and the price band announcement is expected by August 30. Post listing, KRT is poised to become India’s largest REIT by gross asset value, pegged at around Rs 62,000 crore. Its net operating income stood at Rs 3,432 crore in FY24.

Following the IPO, sponsors Sattva Group and Blackstone will retain around 80% ownership in the trust. While Sattva declined to comment, sources said the trust will continue to adopt a brand-neutral approach, focusing on inorganic growth through third-party acquisitions.There are currently four REITs listed in India — Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust.

Except for Nexus, which is focused on retail spaces, the others are anchored in office real estate.Together, these four REITs manage over 126 million sq ft of Grade A office and retail space and have distributed over Rs 21,000 crore to unitholders since inception.Sattva Developers, headquartered in Bengaluru, has completed over 74 million sq ft of projects across seven cities, spanning commercial, residential, co-living, co-working, hospitality, and data centres. Another 75 million sq ft is currently in various stages of development.Global investment firm Blackstone continues to hold a substantial portfolio in India’s commercial real estate sector.