Sattva-Blackstone Files for India's Largest REIT IPO with Knowledge Realty Trust
India's real estate sector, Sattva Developers and Blackstone have filed a draft offer document for the initial public offering (IPO) of Knowledge Realty Trust (KRT), poised to become the country’s largest Real Estate Investment Trust (REIT). This IPO will mark Blackstone’s fifth public listing in India’s real estate sector, following the success of Embassy REIT, Mindspace REIT, and Nexus Select Trust.
India’s Most Geographically Diverse Office REIT
KRT boasts a 48 million sq. ft. portfolio across 30 Grade A office assets in six cities, making it India's most geographically expansive office REIT. Nearly 95% of its asset value is concentrated in the country’s three largest office markets: Bengaluru, Hyderabad, and Mumbai. It is also the second-largest REIT in Asia by leasable area.
Premium Office Portfolio with High Occupancy
KRT's office assets enjoy a 90% lease rate, with 76% of tenants being multinational corporations (MNCs) and 45% being Global Capability Centres (GCCs), reflecting the trust’s strong global appeal. Key properties in its portfolio include:
- Sattva Knowledge City (7.3 mn sq. ft.)
- Sattva Knowledge Park (3.3 mn sq. ft.)
- One BKC (0.7 mn sq. ft.)
- Image Tower – A 400-foot-tall iconic business park under construction in Hyderabad’s Hitech City, developed under a Public-Private Partnership (PPP) with the Telangana government.
- Sattva Global City (12.3 mn sq. ft. over 71.2 acres)
- Cessna Business Park, One International Centre, One Unity Centre, One World Centre, and Sattva Softzone, further enhancing KRT’s footprint in India’s top business hubs.
Financial Strength and Growth Prospects
KRT is expected to deliver an 18% compound annual growth rate (CAGR) in Net Operating Income (NOI) from FY25 to FY27, alongside a 15% mark-to-market (MTM) upside potential. The trust maintains long-term lease stability, with a Weighted Average Lease Expiry (WALE) of 8.6 years and a low Loan-to-Value (LTV) ratio, ensuring financial resilience.
Commitment to Sustainability
KRT is aligned with global sustainability standards, incorporating 63 MW of solar power capacity, energy-efficient green buildings, and waste recycling initiatives. These efforts reflect Sattva’s continued commitment to environmental responsibility, as recognised by the IGBC Green Champion Award.
India’s Booming Office Market and Blackstone’s Continued Confidence
India remains the fastest-growing major economy, with stable interest rates, a strong talent pool, and cost advantages compared to global commercial hubs. The country also dominates the global outsourcing market, with a 58% share in GCC operations. As demand for Grade A office space is projected to reach 82 million sq. ft. in 2024, KRT is well-positioned to capitalise on this growth.
Blackstone's involvement in KRT underscores its continued confidence in India's real estate market. The firm’s previous success with Indian REITs and its track record of high-value investments reinforce KRT’s potential as a highly attractive investment opportunity.
Leadership Team
KRT is led by experienced industry professionals:
- Shirish Godbole (CEO) – Formerly with Morgan Stanley and Goldman Sachs.
- Quaiser Parvez (COO) – Former CEO of Nucleus Office Parks.
- Sponsor Board Members – Tuhin Parikh (Blackstone), Bijay Agarwal and Shivam Agarwal (Sattva Group).
As the IPO process progresses, KRT is set to redefine India's commercial real estate landscape, offering investors a diverse, high-quality, and sustainable office portfolio backed by two of the industry’s most respected names.
For more details, the draft offer document is available at:
