Blackstone-backed KRT Receives Sebi Approval for ₹4,800 Crore REIT-IPO, Plans to Reduce Debt by 21%

Knowledge Realty Trust (KRT), backed by Blackstone and Sattva Group, has received Sebi approval to launch a ₹4,800 crore REIT-IPO. The company plans to reduce debt by 21% using IPO proceeds and has reported a net operating income of ₹3,432 crore in FY24. KRT owns over 46 million square feet of office space across 29 properties, primarily located in Mumbai, Bengaluru, and Hyderabad. The REIT aims to raise ₹6,200 crore, making it India's largest REIT IPO.

Title: Knowledge Realty Trust Secures SEBI Approval for ₹4,800 Crore REIT-IPO

Knowledge Realty Trust (KRT), backed by Blackstone and Sattva Group, has received approval from the Securities and Exchange Board of India (SEBI) to launch a ₹4,800 crore Real Estate Investment Trust (REIT) Initial Public Offering (IPO). The company aims to reduce its debt by 21% using the proceeds from the IPO [2].

KRT has already raised ₹1,400 crore from institutional investors prior to the IPO. The company plans to use the funds from the IPO to reduce its debt, which currently stands at ₹19,948.29 crore. The net operating income for the company in FY24 was ₹3,432 crore, indicating strong profitability [2].

The REIT owns over 46 million square feet of office space across 29 properties, primarily located in Mumbai, Bengaluru, and Hyderabad. Notable assets include One BKC and One World Center in Mumbai, Knowledge City and Knowledge Park in Hyderabad, and Cessna Business Park and Sattva Softzone in Bengaluru. KRT plans to monetize 30 premium office assets through this IPO [1].

Post-listing, KRT is expected to become India’s largest REIT by gross asset value, with an initial gross asset value (GAV) of approximately ₹62,000 crore. The company aims to raise a total of ₹6,200 crore through the IPO, making it one of the largest REIT IPOs in India [1].

The REIT is expected to launch investor roadshows this week, with the price band for the IPO likely to be announced on August 30. Blackstone and Sattva Group, the two founding sponsors, will retain around 80% ownership in the REIT post-listing. The sponsors have committed to a brand-neutral strategy for future expansion, aiming to grow KRT’s portfolio through acquisitions [1].

Currently, India has four listed REITs — Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Except for Nexus, which is focused on retail spaces, the others are anchored in office real estate. Together, these REITs manage over 126 million square feet of Grade A office and retail space and have distributed over ₹21,000 crore to unitholders since inception [1].

References:
[1] https://timesofindia.indiatimes.com/business/india-business/krt-ipo-sattva-blackstone-backed-reit-gets-sebi-nod-for-rs-4800-crore-raise-public-issue-likely-to-hit-markets-early-august/articleshow/122937437.cms
[2] https://www.business-standard.com/markets/ipo/blackstone-backed-krt-gets-sebi-approval-to-launch-4800-cr-reit-ipo-125072700723_1.html