BENGALURU
:
Knowledge Realty Trust (KRT), a real estate investment trust (Reit) sponsored by Bengaluru-based developer Sattva Group and asset manager Blackstone, is set to launch its initial public offering (IPO) on 5 August, said two persons close to the development.
The proposed ₹4,800-crore IPO secured approval from the Securities and Exchange Board of India (Sebi) on Friday. The offer will be open from 5 to 8 August.
This will be Asia’s second-largest Reit by size and India’s largest by gross asset value (around ₹62,000 crore) and net operating income, owning over 46 million square feet of office space across 29 assets in six cities, mainly Mumbai, Bengaluru, and Hyderabad.
“The price band will be announced on 30 July. The Reit will be listed in mid-August,” said one of the two persons cited above, on the condition of anonymity.
In June, KRT became the first ever Reit to conclude a pre-IPO fundraising exercise. It raised ₹1,400 crore from investors, including JM Financial, Radhakishan Damani (promoter of DMart), and 360 One Wam Ltd, in a pre-IPO placement. The round was fully subscribed by domestic high-net-worth individuals (HNIs) and family offices, signalling investor confidence ahead of the public issue.
“A substantial amount of the total ₹6,200 crore primary raise will be used for debt repayment. There will be no secondary sale,” said the second person.
A KRT spokesperson didn’t respond to Mint‘s queries.
The KRT IPO
KRT filed its IPO draft papers with Sebi in March. Blackstone—sponsor of three of the four listed Reits in India—will own 55% of the Reit, while the Sattva Group will hold the rest.
The KRT Reit has a ‘brand neutral’ strategy. It aims to acquire assets inorganically and give opportunities to other developers to contribute their assets to the Reit while maintaining their brand identity.
Shirish Godbole, former managing director of Morgan Stanley Real Estate Funds in India, is the trust’s chief executive officer; Quaiser Parvez, former CEO of Blackstone-owned Nucleus Office Parks, is its chief operating officer.
Reits have faced their share of challenges in recent years, many of them pandemic-induced. But with the office market turning around, they are gaining more acceptance.
Around 90% of the Sattva-Blackstone Reit is leased to marquee tenants, split between multi-national corporations and global capability centres (GCCs).
Some of the marquee assets owned by the Trust include One BKC and One World Center in Mumbai, Knowledge City and Knowledge Park in Hyderabad and Cessna Business Park and Sattva Softzone in Bengaluru.
