Blackstone Inc., in collaboration with Bengaluru-based Sattva Group, is poised to submit the draft red herring prospectus (DRHP) for their Real Estate Investment Trust (REIT), Knowledge Realty Trust, by mid-February 2025. The proposed INR 7,000-crore issuance would represent the biggest REIT offering in India and the second-largest in Asia by total leasable area.
Knowledge Realty Trust
Blackstone will maintain a 55% equity position, while Sattva Group will retain the remaining 45%. The REIT’s portfolio comprises an estimated 48-50 million square feet of commercial office space across Mumbai, Bengaluru, Hyderabad, Pune, and additional key metropolitan hubs. This portfolio encompasses 30 office properties, including:
- Mumbai: One BKC, One International Centre, One World Centre
- Hyderabad: Sattva Knowledge City, Sattva Knowledge Park
- Bengaluru: Cessna Business Park, Exora Business Park, Sattva Global City
Blackstone’s Expanding REIT Presence in India
The forthcoming Knowledge Realty Trust REIT will constitute Blackstone’s fourth REIT venture in India and the fifth REIT listing in the country overall. Blackstone was instrumental in inaugurating India’s REIT market, initiating the Embassy Office Parks REIT IPO in March 2019, which secured INR 4,750 crore. Subsequent Blackstone-affiliated REITs include Mindspace Business Parks (July 2020, INR 4,500 crore) and Nexus Select Trust, India’s pioneering retail-focused REIT. Apart from Blackstone, Brookfield is the only other private equity entity to have launched a REIT in India, having raised INR 3,800 crore via its Brookfield India Real Estate Trust IPO in February 2021.
Kotak Mahindra Capital to Lead IPO Process
Kotak Mahindra Capital has been designated as the lead book-running manager for the issue, which is slated for a public launch by June 2025, contingent upon regulatory clearances.
Portfolio Breakdown and Exclusions
Blackstone’s aggregated Indian REIT assets amount to nearly 50 million square feet under the Nucleus Office Parks umbrella and joint ventures with Sattva. However, assets associated with Blackstone’s partnership with Panchshil Realty will remain outside this REIT. Nucleus Office Parks, which accounts for 20 million square feet, spans 14 commercial properties distributed across Mumbai, Gurugram, Chennai, Bengaluru, and Ahmedabad. Notable Bengaluru holdings within Nucleus include One Trade Tower and Cessna Business Park.
The Expanding Indian REIT Market
India’s REIT landscape collectively manages assets exceeding INR 1.2 lakh crore, with an aggregate market capitalization surpassing INR 75,000 crore. The four listed REITs in India currently control a total of 113.5 million square feet of office and retail real estate. The addition of Knowledge Realty Trust is projected to further catalyze market expansion by incorporating premium-grade commercial properties into the publicly investable domain.
Conclusion
With Blackstone and Sattva Group advancing their filing for Knowledge Realty Trust, India’s commercial real estate investment sector is poised for a significant milestone. The INR 7,000-crore IPO, underpinned by an expansive and well-diversified portfolio, will deepen market liquidity and enhance investor participation within the country’s burgeoning REIT ecosystem.
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