Blackstone & Sattva Developers target India's Major REIT IPO! Files DRHP for Rs. 6,200 Crore

The Knowledge Realty Trust's sponsors, Blackstone and Sattva Developers, have submitted the draft documents to the Securities and Exchange Board of India (Sebi). In its draft red herring prospectus (DRHP), the Trust—a joint venture between the Sattva Group and Blackstone—stated that it hopes to generate up to Rs. 6,200 crore through the initial public offering (IPO).

The DRHP states that Knowledge Realty Trust (KRT) is the second-biggest REIT in Asia by leasable area and the largest REIT in India by Net Operating Income (NOI) and Gross Asset Value (GAV)/Valuation. It is India's largest geographically diverse office REIT; with a portfolio of 48 million square feet (37 million square feet completed) spread across 30 Grade A office assets in 6 cities.

Bengaluru, Hyderabad, and Mumbai are India's top three office markets, accounting for about 95% of the total value. According to the DRHP, the units must be listed on the National Stock Exchange of India (NSE) and the BSE. The stock exchanges have given Knowledge Realty Trust their in-principle approval to list the units.

The issue's registrar is KFin Technologies. Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, ICICI Securities, SBI Capital Markets, Morgan Stanley India Company, JM Financial, and IIFL Capital Services are among the lead managers in charge of running the books.

Under the terms of the Indian Trusts Act, 1882, the Knowledge Realty Trust, a real estate investment trust, was established on October 10, 2024, in Mumbai, Maharashtra, India, as a contributing, determinate, and irrevocable trust. The Manager has paid the initial sum of Rs. 0.1 million to Knowledge Realty Trust on behalf of all the sponsors. Knowledge Realty Trust is sponsored by Sattva Developers (the Sattva Sponsor) and BREP Asia SG L&T Holding (the Blackstone Sponsor) as of the date of this Draft Offer Document.

"The Price Band will be decided by the manager, in consultation with the lead managers, and shall be disclosed at least two working days prior to the bid/issue opening date on the websites of Knowledge Realty Trust, the Manager, the Blackstone Sponsor, the Sattva Sponsor, and the stock exchanges, and in the newspapers where the pre-Issue advertisement will be published, if any," stated DRHP.