India’s Largest REIT IPO: Blackstone-Sattva JV Plans ₹6,200 Crore Listing

Blackstone and Sattva Group File for ₹6,200 Crore REIT IPO

Global private equity giant Blackstone and real estate major Sattva Group have filed draft papers with the Securities and Exchange Board of India (SEBI) for their upcoming ₹6,200 crore Real Estate Investment Trust (REIT) IPO. This Knowledge Realty Trust IPO is set to be India’s largest REIT offering to date.

The draft red herring prospectus (DRHP) was submitted on March 5, 2025, and outlines the listing of Knowledge Realty Trust on both BSE and NSE. This would make it the fifth major listed REIT in India, joining:

• Embassy Office Parks REIT
• Mindspace Business Parks REIT
• Brookfield India Real Estate Trust
• Nexus Select Trust

Knowledge Realty Trust: India’s Largest and Asia’s Second-Largest REIT

Knowledge Realty Trust was established on October 10, 2024, in Mumbai and has quickly become a dominant player in India's REIT market. According to its DRHP:

• It is India’s largest REIT by net operating income and gross asset value.
• It is the second-largest REIT in Asia by leasable area.
• The portfolio covers 48 million sq. ft., including 37 million sq. ft. of completed assets, across six major cities.
• Nearly 95% of the value is concentrated in Bengaluru, Hyderabad, and Mumbai—India’s top three office markets.

Blackstone-Sattva Ownership Structure

The REIT is a joint venture (JV) between Blackstone and Sattva Developers Pvt. Ltd. The ownership split is as follows:

• Blackstone: 55% stake
• Sattva Developers: 45% stake

IPO Structure and Listing Details

• IPO Type: Book-built issue
• Price Band: Yet to be announced (will be disclosed at least two working days before the IPO opens)
• Stock Exchanges: BSE & NSE

Use of IPO Proceeds

The net proceeds from the IPO will be utilized for:

1. Partial or full repayment of certain financial debts of asset special purpose vehicles (SPVs).
2. General corporate purposes.

Financial Performance of Knowledge Realty Trust

Knowledge Realty Trust has reported strong financial performance ahead of its IPO:

• Net Operating Income (H1 FY25): ₹1,632.38 crore
• Total Asset Value (as of September 30, 2024): ₹60,000 crore

Understanding REITs and Why Investors Are Interested

A Real Estate Investment Trust (REIT) is a company that owns and manages income-generating real estate assets. Similar to mutual funds, REITs pool capital from investors to invest in commercial properties. Investors earn returns in the form of dividends and interest payments.

Bankers and Registrars for the Knowledge Realty Trust IPO

• Registrar: KFin Technologies
• Lead Book Running Managers:
  • Kotak Mahindra Capital Co.
  • Axis Capital Ltd
  • BofA Securities India Ltd
  • ICICI Securities Ltd
  • IIFL Capital Services Ltd
  • JM Financial Ltd
  • Morgan Stanley India Co.
  • SBI Capital Markets Ltd

Why This IPO Matters for India’s REIT Market

The launch of Knowledge Realty Trust REIT IPO marks a significant growth step for India’s REIT industry, bringing:
✅ Increased liquidity in the real estate sector
✅ More investment opportunities for retail and institutional investors
✅ Greater transparency and standardization in commercial real estate investing

Final Thoughts: Should You Invest?

Pros:
✔ Largest REIT in India with a strong asset base
✔ High rental income from premium office spaces
✔ Diversified portfolio across India’s top office markets
✔ Strong financial backing from Blackstone and Sattva

Cons:
❌ Real estate market fluctuations may impact valuations
❌ Dependence on demand for Grade A office spaces
❌ Interest rate hikes could affect investor returns

As the IPO price band and exact subscription dates are yet to be announced, investors should closely track market conditions and valuations before investing.

The Upcoming IPOs in this week and coming weeks are Super Iron Foundry, PDP Shipping & Projects, Paradeep Parivahan.

The Closed IPOs are NAPS Global.

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