The REIT — backed by Blackstone Inc. and Sattva Developers Pvt. — raised 14 billion rupees in a pre-IPO allotment to domestic high-networth individuals and family offices earlier this month, one of the persons said, asking not to be identified as the discussions are private. Talks on the share-sale timing are still ongoing and no final decision has been taken yet, the people said.
The offering would mark India’s fifth REIT listing, following IPOs of Embassy Office Parks REIT, Mindspace Business Parks REIT, Brookfield India Real Estate Trust, and Nexus Select Trust. The nation is emerging as a key market for equity sales and REITs are gaining popularity due to their potential to generate attractive returns. A successful offering will help boost confidence in India’s commercial real estate sector.
A representative for Knowledge Realty Trust and Blackstone declined to comment.
The trust had proposed to raise 62 billion rupees in its draft red herring prospectus in March. Proceeds from the IPO will be used to repay debt and for general corporate purposes, it said. Kotak Mahindra Capital, BofA Securities and Morgan Stanley are among the banks advising on the transaction.
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The REIT reported a gross asset value of 594 billion rupees as of September 2024, the filing showed. It reported a net operating income of about 29 billion rupees in the last fiscal year, and has a committed occupancy of nearly 90% as of December.
