CCI Approves Knowledge Realty Trust’s Acquisition of Blackstone and Sattva Group Entities

The Competition Commission of India (CCI) has recently granted approval for Knowledge Realty Trust (KRT) to acquire multiple entities affiliated with Blackstone and Sattva Group. This marks a significant development for KRT, which is preparing for its initial public offering (IPO). The acquisition involves entities that are linked to both the Blackstone Group and the Bengaluru-based Sattva Group. These entities primarily operate in the commercial real estate and renewable power sectors in India.

Knowledge Realty Trust, sponsored by Sattva Group and Blackstone, is managed through Knowledge Realty Office Management Services, which was previously known as Trinity Office Management Services. KRT is a real estate investment trust (REIT) that focuses on owning and managing a portfolio of income-generating real estate assets. The entities being acquired by KRT include those that are either directly or indirectly controlled by Blackstone and Sattva Group, with some entities jointly controlled by both.

The approval from CCI is a pivotal moment for KRT as it positions itself to be a significant player in the Indian real estate market. This acquisition adds strength to KRT’s portfolio, which already consists of 30 prime office assets across major Indian cities. These assets are expected to be a part of KRT’s REIT portfolio, which aims to raise more than ₹6,200 crore through its upcoming IPO. The IPO is a crucial part of KRT’s strategy to monetize these office assets and expand its market presence.

At the core of the acquisition and IPO is KRT’s ambition to become the largest REIT in India, both in terms of Net Operating Income (NOI) and Gross Asset Value, which is expected to reach around ₹60,000 crore. KRT’s portfolio is diverse and includes a total of 48 million square feet of office space, with 37 million square feet already completed. This makes KRT the most geographically diverse office REIT in India, operating across six major cities. Additionally, the portfolio is highly leased, with 90% of its space occupied by prestigious tenants, including multinational corporations (MNCs) and Global Capability Centres (GCCs).

The approval also solidifies Blackstone’s continued dominance in the Indian real estate market. Blackstone, a leading global investment firm, has been highly active in India, and this transaction will contribute to its growing influence in the country’s real estate sector. KRT's acquisition of entities from both Blackstone and Sattva Group highlights the synergy between the two firms in their efforts to build a robust real estate portfolio in India.

Sattva Developers, which has played a key role in the formation of KRT, has an impressive track record in commercial real estate development. The company has already constructed 74 million square feet of space across seven cities in India. Furthermore, it has plans for an additional 75 million square feet of area, showcasing its ongoing commitment to expanding its footprint in the real estate sector.

In addition to its real estate investments, the entities involved in the acquisition also have interests in renewable power, further diversifying the scope of KRT's operations. This diversification is expected to strengthen KRT’s business model, enabling it to tap into multiple high-growth sectors in India. With this strategic acquisition, Knowledge Realty Trust is setting itself up for accelerated growth, poised to become a leading force in the Indian real estate market.