Private equity firm Blackstone and Bengaluru-based developer Sattva group are planning to file the draft IPO papers for their REIT by the middle of February, looking to raise Rs 7,000 crore, people aware of the development told Moneycontrol.
The Real Estate Investment Trust (REIT) named Knowledge Realty Trust will be the biggest in India, with total leasable space of 48 million square feet, and the second largest in Asia, the sources said.
Moneycontrol first wrote about Blackstone and Sattva's plans to launch a real estate trust on March 22, 2024.
The REIT will be majority owned by the Blackstone at 55 percent with Sattva holding the rest.
The trust will have assets in six cities, including Mumbai, Bengaluru, Hyderabad and Pune, with 30 office properties.
Some of the properties to be included in the REIT are One BKC, One International Centre and One World Centre in Mumbai, Sattva Knowledge City and Sattva Knowledge Park in Hyderabad and Cessna and Exora Business Parks in Bengaluru, the sources said.
The public offer is expected to be launched by June, they added.
Blackstone and Sattva declined to comment on Moneycontrol’s queries.
REIT landscape
The Blackstone-Sattva REIT will be the fifth such trust to hit the market and the fourth offering from the private equity firm, which is the biggest landlord of commercial office space in the country.
Blackstone launched India’s first REIT with the IPO of Embassy Office Parks in March 2019, which raised Rs 4,750 crore.
Embassy REIT manages a portfolio of 38.4 million square feet.
Embassy REIT offer was followed by the IPO of Mindspace Business Parks REIT backed by K Raheja Corp and Blackstone, which raised Rs 4,500 crore.
Mindspace trust manages 34.8 million square feet.
Apart from the two commercial office trusts, Blackstone has also sponsored trust which owns malls. Nexus Select Trust manages a portfolio of 9.9 million square feet across 17 malls, including a couple of hotels and three office assets.
Brookfield is the only other private equity player that has floated a REIT in India, raising Rs 3,800 crore through the initial share sale of Brookfield India Real Estate Trust in February 2021.
The Brookfield trust manages a portfolio of 28.9 million square feet.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
