Blackstone-Sattva JV Firm Files Draft For ₹6,200 Crore REIT IPO

Knowledge Realty Trust (KRT), a joint venture between Sattva Group and Blackstone, has filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise ₹6,200 crore through an initial public offering (IPO). This will be the largest Real Estate Investment Trust (REIT) IPO in India. KRT owns a diverse portfolio of 48 million square feet of office space across six major cities, making it the most geographically spread office REIT in the country.  

Portfolio, Ownership and Market Presence

Blackstone holds a 55% stake in Knowledge Realty Trust, while Sattva Group owns 45%. The portfolio includes 30 premium office assets, with nearly 95% of the total value concentrated in India’s top three commercial hubs—Bengaluru, Hyderabad and Mumbai. Major properties include Sattva Knowledge City, Sattva Global City, Cessna Business Park, One BKC in Mumbai and the upcoming Image Tower in Hyderabad. 

Comparison with Existing REITs in India

Currently, there are four listed REITs in India: Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Among them, Embassy, Mindspace and Brookfield focus on rent-yielding office spaces, whereas Nexus specialises in retail properties. KRT will be the fifth REIT in the country and the fourth backed by Blackstone. The trust is projected to have the highest Net Operating Income (NOI) in India at ₹4,300 crore and a Gross Asset Value (GAV) of ₹60,000 crore, making it a market leader.  

IPO Details and Financial Use

The IPO will be executed through a book-building process, with leading financial institutions such as Kotak Mahindra Capital, Axis Capital, BofA Securities India, ICICI Securities, SBI Capital Markets, Morgan Stanley India, JM Financial and IIFL Capital Services acting as book runners. The listing will take place on both BSE and NSE. Funds raised from the IPO will be used for repaying or prepaying financial debts of its special purpose vehicles (SPVs) and investment entities, as well as for general corporate purposes.  

Sattva and Blackstone’s Strategy for Growth

Sattva Group, a leading real estate developer in India, has delivered 74 million square feet of commercial, residential and co-working spaces and has another 75 million square feet in the pipeline. Blackstone, one of the world’s largest investment firms, has played a crucial role in shaping India’s REIT market with previous listings like Embassy REIT, Mindspace REIT and Nexus REIT. 

Conclusion

With strong backing from Blackstone and Sattva, Knowledge Realty Trust is set to reshape India’s REIT landscape, offering investors exposure to a high-value office portfolio with strong occupancy and global tenants.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.