Sattva Group and Blackstone backed JV files DRHP to raise Rs 6,200 cr in India’s largest REIT IPO

Knowledge Realty Trust will be the largest REIT in India in terms of net operating income (NOI) and gross asset value, which is estimated at around Rs 60,000 crore. It is also the second largest in Asia by leasable area.

The joint venture is 55% owned by Blackstone, while Sattva holds a 45% stake.

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.

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.

Knowledge Realty’s total portfolio includes 48 million sq ft across 30 Grade A office assets in 6 cities, making it India’s most geographically diverse Office REIT.Almost 95% of the value is concentration in Top 3 office markets of India namely Bengaluru, Hyderabad and Mumbai.Sattva Group is a real estate conglomerate headquartered in the south Indian city of Bengaluru and has operations across seven cities in the country.

It has so far constructed 74 million sq ft across seven Indian cities in commercial, residential, co-living, co-working, hospitality, and data center sectors. An additional 75 million square feet area is in planning and implementation.

Meanwhile, Blackstone is one of the leading global investment firms and has a huge exposure in the Indian real estate market. This will be the fifth public listing of Blackstone India realty business post 3 REITs and 1 C-Corporation (Ventive Hospitality).

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

Bank of America, Morgan Stanley amongst others are the book runners for the IPO.