Sattva Developers and Blackstone-Backed Knowledge Realty Trust File for ₹6,200 Crore REIT IPO with SEBI

Sattva Developers and Blackstone-backed Knowledge Realty Trust (KRT) have filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise over ₹6,200 crore. The proposed REIT listing will be the largest in India and the second largest in Asia based on gross asset value. KRT aims to monetize its portfolio of 30 Grade A office assets spread across six major cities, covering a total area of 48.1 million square feet, including 37.1 million square feet of completed properties.

The trust’s assets are spread across Hyderabad, Mumbai, Bengaluru, Chennai, Gift City Ahmedabad, and Gurugram. The portfolio is 90% leased, with 76% of tenants being multinational corporations (MNCs) and 45% being Global Capability Centres (GCCs). With an estimated gross asset value of around ₹60,000 crore, KRT is set to become the largest REIT in India in terms of net operating income and asset holdings.

Real Estate Investment Trusts (REITs) operate as investment vehicles that own, manage, and generate income from rental properties. These trusts allow investors to participate in real estate markets without directly purchasing properties. REITs in India are required to be listed on stock exchanges, enabling small investors to buy and trade units similar to mutual funds or company shares. REITable properties primarily consist of commercial spaces that generate steady rental income.

Currently, four REITs are listed in India—Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Together, they manage over 126 million square feet of Grade A office and retail space. Since inception, these REITs have distributed over ₹21,000 crore to their investors. The upcoming KRT listing will mark Blackstone’s fifth public listing in the Indian real estate sector, adding to its existing three listed REITs and one hospitality venture.

Sattva Developers has been an active participant in India’s real estate market, with a total of 74 million square feet developed across seven cities. The company has worked in commercial, residential, co-living, co-working, hospitality, and data center sectors, with an additional 75 million square feet in various stages of planning and execution. Blackstone, a global investment firm, has a strong presence in the Indian real estate market, with a history of investments across multiple asset classes.

Experts believe that the REIT market in India is expanding with increasing participation from large developers and institutional investors. The introduction of new REITs is expected to improve liquidity in the sector and attract retail investors looking for steady returns. Shrinivas Rao, CEO of Vestian, noted that REITs are an essential tool for investors seeking portfolio diversification and stable income. According to a Vestian report, nearly 60% of India’s office stock in top cities is REIT-worthy, indicating further growth potential.

As regulatory frameworks evolve, India is likely to witness more REIT listings across different real estate segments. A combination of favorable regulations, stable returns, and a growing commercial real estate market is expected to drive the expansion of the REIT sector in the coming years. The listing of KRT is anticipated to strengthen investor confidence and provide a boost to the commercial property market in India.