Blackstone and Sattva have jointly submitted the draft prospectus for a real estate investment trust aimed at raising ₹6,200 crore (about $712 million). The REIT will have a commercial portfolio of 48 million square feet, with 37 million square feet already completed. Sources suggest that the fundraising could fall within the range of ₹5,700-7,500 crore.
The proposed REIT, named Knowledge Realty Trust, is expected to become the largest office REIT in the country, boasting a gross asset value of ₹59,445 crore and a net operating income of ₹1,632.4 crore in the first half of FY25. Blackstone holds a 55 per cent stake in the venture, while Sattva owns the remaining 45 per cent.
The portfolio comprises 30 office assets spread across six cities, with an occupancy rate of 89.9 per cent. The properties are largely leased out to multinational companies and Global Capability Centres, with a lease commitment of 90 per cent. Some notable properties within the portfolio include One BKC in Mumbai, Sattva Knowledge City in Hyderabad, and Sattva Horizon in Bengaluru.
The funds raised from the REIT, primarily amounting to ₹5,800 crore, will be utilized to repay debts owed by special purpose vehicles and investment entities. The remaining sum will be allocated for general corporate purposes. The venture expects a growth potential of 18 per cent in net operating income over the next two years, with a mark-to-market upside potential of 15 per cent.
This initiative marks Blackstone’s third office REIT in India, following Embassy Office Parks and Mindspace Business Parks. Additionally, Blackstone is the sponsor of Nexus Select Trust, the sole retail-focused REIT in the country. The venture also has a pipeline of 7.5 million square feet under the right of first offer, providing lease rental stability with a weighted average lease expiry of 8.6 years.
