Knowledge Realty Trust (KRT), sponsored by real estate giant Sattva Group and global investment firm Blackstone, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch its maiden Real Estate Investment Trust (REIT) public offering. The IPO aims to raise over Rs 62 billion, marking a significant milestone in India's expanding REIT market.

India’s Largest REIT by Net Operating Income With an estimated Gross Asset Value of around Rs 600 billion, KRT is set to become the largest REIT in India in terms of Net Operating Income (NOI). The REIT’s portfolio comprises 48 million sq. ft. of prime Grade A office assets across six major cities, of which 37 million sq. ft. is already completed. It boasts an impressive occupancy rate of 90%, with high-profile tenants—76% of them being multinational corporations and 45% comprising Global Capability Centres (GCCs).

Expanding India’s REIT Market At present, four REITs are listed in India: Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. While Nexus Select Trust is primarily focused on retail real estate, the other three REITs are backed by rent-yielding office assets. KRT’s entry will mark Blackstone’s fifth public listing in India’s real estate sector, further strengthening its foothold in the market.

A Brand-Neutral Growth Strategy Sattva Developers, which has delivered 74 million sq. ft. of projects across commercial, residential, hospitality, and data centre sectors, is collaborating with Blackstone to grow KRT’s portfolio through third-party acquisitions. The REIT will adopt a brand-neutral approach to its expansion, ensuring flexibility in acquiring high-value assets beyond those developed by its sponsors.

REITs Transforming India’s Real Estate Landscape Since their inception, India’s listed REITs have collectively distributed over Rs 210 billion to unitholders. With nearly 60% of India’s office stock classified as ‘REIT-worthy’ across the top seven cities, the potential for further growth in the sector remains vast.

According to Shrinivas Rao, CEO of real estate consultancy firm Vestian, the REIT market in India is evolving rapidly with increasing participation from large developers and institutional investors. "The listing of new REITs will enhance liquidity in the real estate sector by attracting greater retail investor participation," he remarked.

As regulatory frameworks continue to mature and the demand for Grade A office spaces remains strong, India is poised to witness more REIT listings in the coming years. With its scale, strategic positioning, and backing from two industry leaders, Knowledge Realty Trust’s IPO could be a defining moment for the country’s commercial real estate sector.