Sattva-Blackstone Backed KRT Gets Sebi Nod to Launch ₹4,800-Cr REIT-IPO

Knowledge Realty Trust, sponsored by realty firm Sattva Group and Blackstone, has got Sebi approval to launch its REIT public offering to raise ₹4,800 crore fund.

Last month, Knowledge Realty Trust (KRT) had raised ₹1,400 crore from investors ahead of its maiden REIT public issue.

In early March, the KRT filed the draft red herring prospectus (DRHP) with Sebi to launch an initial public offering (IPO) and list the REIT on stock exchanges.

This is part of a strategy to monetise its 30 prime office assets across major cities.

According to sources, KRT received Sebi approval to launch its REIT-IPO, which is scheduled to hit the capital markets in the first week of August.

The company plans to raise ₹4,800 crore through the public issue as it has already raised ₹1,400 crore from investors, they added.

Sattva Group spokesperson declined to comment.

The company will start the roadshow this week, and the price band is likely to be announced on August 30.

KRT is set to become India's largest REIT by gross asset value (around ₹62,000 crore).

Its net operating income stood at ₹3,432 crore in the previous fiscal year.

The KRT owns over 46 millions sq ft of office assets across 29 assets in six cities, primarily Mumbai, Bengaluru, and Hyderabad.

The assets 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.

Blackstone and Sattva will continue to own about 80% of the REIT. At present, there are four listed REITs in India -- Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust.

Apart from Nexus Select Trust, the other three REITs are backed by rent-yielding office assets. Nexus owns a large portfolio of retail real estate spaces.

Bengaluru-based Sattva Developers has so far constructed 74 million sq ft across seven Indian cities in commercial, residential, co-living, co-working, hospitality, and data centre sectors.

An additional 75 million sq ft is in planning and implementation stage.

Blackstone, one of the leading global investment firms, has a huge exposure in the Indian real estate market.

The two sponsors have decided to adopt brand brand-neutral strategy to grow the KRT portfolio inorganically through third-party acquisitions.

The existing four REITs have a combined portfolio of over 126 million sq ft of Grade A office and retail space across the country.

Since their inception, these REITs have collectively distributed over ₹21,000 crore to unitholders.