A draft offer document for the first public offering (IPO) of Knowledge Realty Trust (KRT), which is set to become the biggest Real Estate Investment Trust (REIT) in India, has been submitted by Sattva Developers and Blackstone. After the success of Embassy REIT, Mindspace REIT, and Nexus Select Trust, this IPO will be Blackstone’s sixth public offering in the Indian real estate market.

The Geographically Diverse Office REIT in India

KRT is the most geographically extensive office REIT in India, with a portfolio of 48 million square feet spread over 30 Grade A office buildings in six cities. Bengaluru, Hyderabad, and Mumbai are the three biggest office markets in the nation, accounting for about 95% of its total asset value. In terms of leasable area, it is also Asia’s second-largest REIT.

High Occupancy Premium Office Portfolio

Due to the trust’s great worldwide appeal, KRT’s office properties have a 90% lease rate, with 76% of tenants being multinational companies (MNCs) and 45% being worldwide Capability Centers (GCCs). Among the portfolio’s principal properties are:

Sattva Knowledge City, which has 7.3 million square feet
The Sattva Knowledge Park has 3.3 million square feet.
One BKC (0.7 million square feet)
Under a Public-Private Partnership (PPP) with the Telangana government, Image Tower, a 400-foot-tall landmark business park, is being built in Hyderabad’s Hitech City.

KRT’s presence in India’s leading commercial districts is further strengthened with Sattva Global City (12.3 million square feet spread over 71.2 acres), Cessna commercial Park, One International Center, One Unity Center, One World Center, and Sattva Softzone.
Strength of Finances and Opportunities for Growth

From FY25 to FY27, KRT is anticipated to generate Net Operating Income (NOI) at a compound annual growth rate (CAGR) of 18%, with a 15% mark-to-market (MTM) upside potential. With a low Loan-to-Value (LTV) ratio and a Weighted Average Lease Expiry (WALE) of 8.6 years, the trust ensures financial resilience by maintaining long-term lease stability.

Dedication to Sustainability

With its 63 MW of solar power capacity, energy-efficient green buildings, and garbage recycling programs, KRT complies with international sustainability requirements. The IGBC Green Champion Award acknowledges Sattva’s ongoing dedication to environmental responsibility, which is shown in these initiatives.

India’s Expanding Office Sector and Blackstone’s Persistent Trust

With stable interest rates, a robust talent pool, and cost advantages over international commercial centers, India continues to be the major economy with the quickest pace of growth. With a 58% stake in GCC activities, the nation also controls the worldwide outsourcing business. KRT is well positioned to benefit from the anticipated 82 million square feet of demand for Grade A office space in 2024.

Blackstone’s investment in KRT demonstrates its ongoing faith in the Indian real estate sector. KRT’s potential as a very alluring investment opportunity is further supported by the company’s prior experience with Indian REITs and its history of high-value investments.

Team Leadership

KRT is run by seasoned business experts:

Shirish Godbole, the CEO, was formerly employed at Goldman Sachs and Morgan Stanley.
Quaiser Parvez (COO) was Nucleus Office Parks’ previous CEO.
Sponsor Board Members: Shivam Agarwal (Sattva Group), Bijay Agarwal, and Tuhin Parikh (Blackstone).
With the support of two of the most reputable brands in the business, KRT is poised to transform India’s commercial real estate market as the IPO process moves forward by providing investors with a varied, superior, and long-lasting office portfolio.