Blackstone-backed trust files for India’s largest REIT IPO

India’s Knowledge Realty Trust has sought approval for an initial public offering of 62 billion rupees ($711 million), in what could be the nation’s largest real estate investment trust listing.

The REIT, backed by Blackstone Inc. and Sattva Developers Pvt., has offices in key Indian cities including Bengaluru, Mumbai, Hyderabad and Chennai. The proceeds from the sale would be used mostly for repayment of debt.

India is emerging as a key market for equity sales and REITs are gaining popularity due to their potential to generate attractive returns. There are currently four listed REITs in India, including Brookfield India and Embassy Office Parks.

Knowledge Realty is the largest REIT in India by gross asset value, according to the draft red herring prospects filed with India’s market regulator. It reported a net operating income of about 29 billion rupees ($333 million) in the last fiscal year, and has a committed occupancy of 89.9% as of December.