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Blackstone-backed KRT gets Sebi approval to launch ₹4,800 cr REIT-IPO

Sattva Group and Blackstone-backed Knowledge Realty Trust (KRT) has received approval from the Securities and Exchange Board of India (Sebi) to launch its Real Estate Investment Trust (REIT) public issue. The offering, expected to open in the first week of August, aims to raise ₹4,800 crore, making it one of the largest REIT IPOs in the country. KRT has already raised ₹1,400 crore in a pre-IPO placement last month. The company had filed its Draft Red Herring Prospectus (DRHP) with Sebi in March 2025. The company plans to use proceeds from the issue to reduce debt. "We plan to reduce our leverage by utilizing a significant portion of net proceeds from the fresh issue to repay certain indebtedness incurred by the Asset Special Purpose Vehicles (SPVs)," the company stated in the DRHP. The company plans to reduce debt by 21 per cent using the funds from the IPO proceeds. "Our total borrowings as of September 30, 2024, were ₹19,948.29 crore. We expect our total debt on listing to be less than 21 per cent of our initial GAV at the time of listing of Units pursuant to the Issue," the company stated. The company currently owns over 46 million square feet of office space across 29 properties, primarily located in Mumbai, Bengaluru, and Hyderabad. KRT's portfolio includes 30 office assets spread across major Indian cities. Notable assets in the portfolio 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. With a proposed fundraise of approximately ₹6,200 crore, Knowledge Realty Trust is poised to launch India's largest REIT IPO. The REIT reported a net operating income of ₹3,432 crore in FY24, underlining the scale and profitability of its rental-yielding commercial properties. Blackstone and Sattva Group, the two founding sponsors, will retain around 80 per cent ownership in the REIT post-listing. The sponsors have committed to a brand-neutral strategy for future expansion, aiming to grow KRT's portfolio through acquisitions. The REIT is expected to launch investor roadshows this week, according to a PTI report, with the price band for the IPO likely to be announced on August 30. Sattva Group, based in Bengaluru, has delivered over 74 million sq ft of real estate across commercial, residential, hospitality, and co-working segments, with an additional 75 million sq ft under development. Currently, India has four listed REITs — Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Among them, Nexus is retail-focused, while the others primarily own rent-generating office spaces.