Knowledge Realty Trust, backed by the Sattva Group and global investment firm Blackstone, has mobilised ₹1,620 crore from anchor investors ahead of its upcoming real estate investment trust (REIT) public issue. The anchor allotment took place on August 4, just a day before the issue opened for public subscription.
According to a disclosure on the BSE, a total of 16.2 crore units were allocated to anchor investors at ₹100 per unit. Prominent institutions participating in the anchor round include TATA AIG General Insurance Company, Life Insurance Corporation of India (LIC), Nippon India Mutual Fund, Axis Mutual Fund, Tata Mutual Fund, Amundi, Wells Capital, Jhunjhunwala Trust, and 360 ONE. In addition to the anchor portion, Knowledge Realty Trust has secured a separate strategic allocation of ₹1,200 crore from institutional investors.
The REIT IPO will remain open from August 5 to August 7. The offering is entirely a fresh issuance of units, with the price band fixed between ₹95 and ₹100 per unit. Initially, the company intended to raise ₹6,200 crore through the public issue, but following the early rounds of fundraising, the offer size has been revised downward to ₹4,800 crore.
The REIT is aiming to monetise a high-quality portfolio comprising 30 prime office properties spread across major Indian cities. With a projected gross asset value of around ₹62,000 crore, Knowledge Realty Trust is set to become the largest listed REIT in India by asset base. The REIT reported a net operating income of ₹3,432 crore for the previous financial year.
The current portfolio spans over 46 million square feet across 29 assets located in six cities, with Mumbai, Bengaluru, and Hyderabad being the key markets. Signature properties 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.
Post-listing, Blackstone and Sattva will continue to retain about 80 per cent ownership in the REIT. Both sponsors have stated that the REIT will follow a brand-neutral growth strategy, enabling it to expand inorganically by acquiring third-party office assets, thus potentially enhancing the portfolio and returns to investors.
Knowledge Realty Trust will be the fifth REIT to be listed in India, joining the ranks of Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Except for Nexus, which is primarily focused on retail assets, the others are largely backed by income-generating Grade A office spaces.
The four currently listed REITs collectively own more than 126 million square feet of office and retail space and have distributed over ₹21,000 crore to unitholders since their respective listings. This performance has contributed to growing investor confidence in REITs as a viable income-generating asset class.
Sattva Developers, based in Bengaluru, has so far delivered over 74 million square feet of space across seven Indian cities, with a diversified portfolio covering residential, commercial, co-working, co-living, hospitality, and data centre verticals. An additional 75 million square feet is currently under planning or execution. Blackstone, for its part, has been a long-standing investor in Indian commercial real estate and remains committed to expanding its presence through strategic partnerships like this REIT.
Knowledge Realty Trust’s upcoming listing marks a significant milestone for India’s REIT market, further diversifying the options available to institutional and retail investors seeking long-term exposure to rent-yielding commercial real estate assets.
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