Knowledge Realty Trust, a real estate investment trust (REIT) backed by the renowned Blackstone and Bengaluru’s own Sattva Group, has officially submitted its draft red herring prospectus (DRHP) for an upcoming initial public offering (IPO). This significant move is set to raise between ₹7,000 crore and ₹8,000 crore, potentially marking the largest public issue in the REIT sector to date.

Impressive Asset Portfolio and Market Position

Sources reveal that Knowledge Realty Trust boasts a staggering gross asset value of ₹60,000 crore. This REIT stands out as the second-largest in Asia regarding leasable space and takes the top spot in India when measured by net operating income and gross asset value (GAV).

Historical Context of Blackstone’s REIT Ventures

The IPO from Blackstone is particularly noteworthy as it follows their previous successful ventures in India. Their inaugural REIT offering, Embassy Office Parks, launched in March 2019, raised ₹4,750 crore, while Mindspace Business Parks raised ₹4,500 crore in July 2020.

A Robust Property Portfolio

Knowledge Realty Trust features an impressive portfolio totaling 48 million square feet, with 37 million square feet already developed across 30 Grade A office assets spanning six major cities. The trust has concentrated nearly 95% of its value in three key markets: Bengaluru, Hyderabad, and Mumbai.

Key properties in their collection include:

• Sattva Knowledge City: A vast 7.3 million sq ft complex.
• Sattva Knowledge Park: A 3.3 million sq ft site located in Hyderabad.
• A 0.7 million sq ft asset owned by Blackstone in Mumbai.

Future Collaborations and Growth Opportunities

This upcoming IPO marks the fourth REIT initiative from Blackstone, following Embassy Office Parks, Mindspace Business Parks, and Nexus Select Trust. Recently, Blackstone also entered the hospitality sector with the launch of Ventive Hospitality.

Interestingly, the new REIT is designed to be a platform for brand-neutrality, allowing other developers to contribute their assets. "In addition to acquiring assets through external means, the REIT aims to provide opportunities for developers to integrate their assets and benefit from the REIT model," a source disclosed.

Sattva Developers Behind the Expansion

Sattva Developers has made a significant mark in the real estate landscape, having developed 74 million square feet across seven cities in India. This collaborative spirit and their extensive portfolio position Knowledge Realty Trust as a promising player in the evolving REIT market.

With such substantial backing and a well-rounded asset base, Knowledge Realty Trust is poised for a dynamic entry into the public market, capturing investor interest in the booming real estate sector.