Sattva Group and Blackstone-Sponsored Knowledge Realty Trust Raises ₹1,400 Crore in Pre-IPO Round

Knowledge Realty Trust (KRT), the Real Estate Investment Trust (REIT) sponsored by Sattva Group and global investment major Blackstone, has successfully raised ₹1,400 crore in a pre-IPO funding round. The capital has been mobilised from family offices and high-net-worth individuals (HNIs) as the trust gears up for its maiden public issue.

This fundraise marks a key milestone in the lead-up to KRT's proposed ₹6,200 crore Initial Public Offering (IPO), for which it filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in early March. The IPO will facilitate the listing of KRT on Indian stock exchanges, making it the fifth publicly traded REIT in the country.

Knowledge Realty Trust is poised to become India's largest REIT by Net Operating Income (NOI) and Gross Asset Value (GAV). The trust's total GAV is estimated at approximately ₹60,000 crore. It holds a geographically diverse portfolio of 30 Grade A office properties, spread across six major Indian cities. The portfolio covers 48 million square feet in total area, of which 37 million square feet is already completed and operational.

The tenant profile of KRT is dominated by multinational companies and Global Capability Centres (GCCs). Of the leased space, 76% is occupied by MNCs and 45% by GCCs, underlining the trust’s appeal among global businesses. Overall, 90% of the portfolio is currently leased.

With this launch, Knowledge Realty Trust will become the fifth REIT to be listed in India. The current four include Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Among them, Nexus is focused on retail real estate assets, while the others are primarily backed by rent-yielding office properties.

Blackstone, a global leader in alternative investments, has played a prominent role in India's REIT landscape. The launch of KRT will mark the fifth public listing associated with Blackstone’s India real estate ventures, including three REITs and one listing from the hospitality segment under Ventive Hospitality.

Sattva Group, a co-sponsor of KRT, has extensive experience in Indian real estate, having developed 74 million square feet of space across seven cities. Its portfolio includes commercial, residential, co-living, co-working, data centres, and hospitality assets. The group has another 75 million square feet under planning or development.

The collaboration between Sattva and Blackstone aims to support KRT’s long-term growth through a brand-neutral strategy. This means the REIT intends to pursue inorganic growth through acquisitions from third parties, instead of limiting expansion to assets developed solely by its sponsors.

The Indian REIT market has seen considerable growth in recent years. Since their respective launches, the existing four REITs have distributed over ₹21,000 crore to unitholders. These REITs collectively manage over 126 million square feet of high-grade commercial and retail properties.

According to recent estimates from property consultancy Vestian, around 60% of the total office stock in India’s top seven cities is REIT-compliant. This highlights the potential for further expansion in the sector, as institutional investors continue to show interest in yield-generating office assets.

The launch of Knowledge Realty Trust aligns with this trend and is expected to contribute further to the maturing of India’s real estate investment trust ecosystem. By targeting a wide array of institutional-grade assets, backed by strong tenant covenants and operational efficiency, KRT positions itself as a major player in India’s commercial real estate segment.

The IPO is anticipated to open later this year, subject to regulatory approvals and prevailing market conditions.