Knowledge Realty Trust files for Rs 6,200 cr IPO, set to be India's largest office REIT

Knowledge Realty Trust IPO

Knowledge Realty Trust, which is sponsored by Sattva Developers and Blackstone, has filed draft offer document with the SEBI on March 6 to raise Rs 6,200 crore via initial public offering.

Knowledge Realty Trust, which is managed by Knowledge Realty Office Management Services, claimed to be the the largest office REIT (Real Estate Investment Trust) in India based on gross asset value (GAV) of Rs 59,445 crore as of September 2024 as well as by net operating income for H1FY2025 of Rs 1,632.4 crore.

Its portfolio assets are spread across 6 cities (Hyderabad, Mumbai, Bengaluru, Chennai, Gurugram and GIFT City, Ahmedabad), comprising 30 Grade A office assets totaling 48.1 million square feet (msf) as of September 2024, with 37.1 msf of completed area, 2.8 msf of under construction area and 8.2 msf of future development area.

Manager Knowledge Realty Office Management Services, on behalf of the Knowledge Realty Trust, intends to invest Rs 5,800 crore from the IPO proceeds in the asset SPVs (special purpose vehicles) and the investment entities, towards the repayment of debt.

The total outstanding net borrowings availed by the asset SPVs and investment entities was Rs 20,197.4 crore as of September 2024.

Knowledge Realty Trust compares itself with the listed entities like Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust REIT.

The units of Knowledge Realty Trust are proposed to be listed on BSE and National Stock Exchange of India.

The book running lead managers handling the public issue are Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, ICICI Securities, IIFL Capital Services, JM Financial, Morgan Stanley India Company, and SBI Capital Markets.