Knowledge Realty Trust: High GCC Demand and IPO Launch
Knowledge Realty Trust (KRT) is set to launch its IPO on August 5, backed by high demand from global capability centres (GCCs) and plans for third-party acquisitions.
Real EstateIpoGlobal Capability CentresKrtBlackstoneReal EstateJul 30, 2025
The KRT Reit, sponsored by Bengaluru-based developer Sattva Developers and BREP Asia SG L&T Holding, a Blackstone portfolio company, will raise ₹4,800 crore through the IPO. It has already concluded a pre-IPO round in June, raising ₹1,400 crore. KRT has fixed the price band for the issue at ₹95-100 per unit. The minimum bid size is ₹15,000, and the issue closes on August 7.
The entire proceeds from the pre-IPO and IPO will be used for repayment of debt, which will then stand reduced to ₹12,000 crore. Post debt repayment of ₹6,200 crore, we will have enough dry powder to make third-party acquisitions from other developers, Shirish Godbole, chief executive officer of KRT, told Mint.
The key differentiator in the KRT Reit is the well-located asset profile. Around 29% of our portfolio is dedicated to front office tenants. The Reit business is far more predictable today, with swelling occupancy and high demand from GCCs that have worked in their favour, Godbole added.
KRT will be Asia's second-largest Reit by size and India’s largest by gross asset value (around ₹62,000 crore) and net operating income, owning 46.3 million sq ft of office space across 29 assets in six cities - Mumbai, Bengaluru, Hyderabad, Chennai, Gurugram, and GIFT City, Ahmedabad.
Global capability centres are in-house technology hubs set up by multinational corporations for critical services such as HR, finance functions, IT support and maintenance, as well as for research and development. Around 45% of the rental income in KRT's portfolio comes from GCCs. Some of KRT's prominent GCC tenants include Cisco, Google, Amazon, Novartis, and JP Morgan.
As GCCs double down, IT services companies, a dominant tenant base for office space in India, are recalibrating their real estate footprint. Less than 5% of KRT's portfolio exposure is towards IT services companies.
Reits have faced their share of challenges in recent years, many of them pandemic-induced. But with the office market turning around in terms of higher leasing and improved occupancy levels, they are gaining more acceptance. Quaiser Parvez, chief operating officer of KRT, said, The KRT portfolio has 91% occupancy. We have the lowest loan-to-value ratio (LTV) among all the listed (Reit) peers, which gives us room and the flexibility to grow and acquire new assets.
LTV is the debt borrowed compared to the underlying asset value, and is an indicator of financial risk. As part of its inorganic growth, KRT also has 6.7 million sq ft of right of first offer (ROFO) assets, which are currently under development by Sattva, that can be added to the portfolio from 2027-28 onwards. A ROFO is a pre-emptive right granted to a party, giving them the first opportunity to purchase an asset.
This is a pivotal moment for India's office and capital markets. Our partnership with Blackstone has been transformative—not just in scale, but in demonstrating how the right collaboration can create something truly exceptional while making premium office real estate accessible to all investors, Bijay Agarwal, managing director of Sattva, said.
KRT would be the fifth listed Reit in the country, after the three office Reits - Embassy REIT, Mindspace REIT and Brookfield India REIT, and the only retail-focused Nexus Select Trust. Blackstone has participated in three of the four Reits listed in India. This is the 20th year of Blackstone's operations in the country, across its private equity and real estate businesses. US-based Blackstone, the world's largest alternative asset manager, is also the largest office space owner in India.
Frequently Asked Questions
What is Knowledge Realty Trust (KRT)?
Knowledge Realty Trust (KRT) is a real estate investment trust (Reit) that is set to launch its initial public offering (IPO) on August 5. It is sponsored by Bengaluru-based developer Sattva Developers and BREP Asia SG L&T Holding, a Blackstone portfolio company.
How much is KRT raising through its IPO?
KRT is raising ₹4,800 crore through its IPO. It has already concluded a pre-IPO round in June, raising ₹1,400 crore.
What is the price band for KRT's IPO units?
The price band for KRT's IPO units is set at ₹95-100 per unit.
What is the main focus of KRT's tenant mix?
Around 45% of the rental income in KRT's portfolio comes from global capability centres (GCCs), which are in-house technology hubs set up by multinational corporations for critical services such as HR, finance functions, IT support, and maintenance.
What is the significance of KRT's low loan-to-value ratio (LTV)?
KRT has the lowest loan-to-value ratio (LTV) among all the listed (Reit) peers, which gives it room and the flexibility to grow and acquire new assets.
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