Knowledge Realty Trust IPO to open on August 5: India's largest office REIT raises Rs 1,620 crore from anchor investors

Knowledge Realty Trust IPO

Blackstone and Sattva Developers-sponsored Knowledge Realty Trust, the India's largest office real estate investment trust (REIT), has raised Rs 1,620 crore from several domestic and global institutional investors via anchor book ahead of IPO. This was in addition to Rs 1,200 crore amount mobilised through strategic investors.

The Rs 4,800-crore initial share sale will open for public subscription on August 5 and close on August 7, with price band of Rs 95-100 per share.

"The Board of Directors has finalised allocation of 16.2 crore units to anchor investors at Rs 100 per unit," said the Knowledge Realty Office Management Services, the manager of the Knowledge Realty Trust.

Marquee global names like Amundi Funds, Florida Retirement System, Tocu Europe, Morgan Stanley, Barclays Multi-Manager Fund, Societe Generale, BofA Securities Europe, and Citigroup Global invested in the REIT via anchor book.

Further, domestic institutional investors like Life Insurance Corporation, Tata AIG General Insurance, NPS Trust, Jhunjhunwala Discretionary Trust operated by Rakesh Jhunjhunwala's children, 360 ONE, Nippon Life, Axis Mutual Fund, UTI MF, Tata Mutual Fund, WhiteOak Capital, HDFC Life Insurance, Quant Mutual Fund, Kotak Mahindra Life Insurance, and Aditya Birla Sun Life AMC also participated in the anchor book.

"Out of the total allocation of 16.2 crore units to anchor investors, 2.6 crore units (16.05 percent of the total allocation to anchor investors) were allocated to 20 domestic mutual funds through a total of eight schemes," Knowledge Realty Trust said.

Meanwhile, the REIT also mobilised Rs 1,200 crore by finalising allocation of 12 crore units, to 13 strategic investors at same price including Life Insurance Corporation, SBI Life Insurance, UTI Mutual Fund, 360 ONE Prime, HDFC Life Insurance, SBI General Insurance, Kotak Mahindra Life Insurance, and Reliance General Insurance, on July 29.

The Asia's second largest office REIT has reserved up to 75 percent of the offer size for institutional investors, and the remainder 25 percent for non-institutional investors.

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Knowledge Realty Trust intends to utilise Rs 4,640 crore of the IPO proceeds for repayment of debt the asset SPVs and the investment entities, and the remainder for general purposes.

The total outstanding borrowings availed by the asset SPVs (special purpose vehicles) and investment entities were Rs 20,827.7 crore till July 2

Knowledge Realty Trust with a portfolio of 29 Grade A office assets of 46.3 million square feet spread across 6 major cities (including Mumbai, Bengaluru, Hyderabad, and Chennai) will be the fifth REIT available for trading on the BSE and National Stock Exchange of India, after Embassy Office Parks REIT, Mindspace Business Parks REIT, Brookfield India Real Estate Trust REIT, and Nexus Select Trust.

Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, ICICI Securities, IIFL Capital Services, JM Financial, Morgan Stanley India Company, and SBI Capital Markets are acting as the merchant bankers for the Knowledge Realty Trust IPO.