Blackstone Group’s Knowledge Realty Trust (KRT) has successfully secured over ₹1,400 crore in a groundbreaking pre-initial public offering (IPO) placement. This marks a significant first for an Indian REIT in terms of pre-IPO fundraising, drawing full subscription from affluent domestic individuals and family offices, a clear sign of robust investor confidence ahead of its public market debut. Notable investors in this initial funding round include JM Financial, Radhakishan Damani, and 360 One Wealth Management.
KRT, a collaborative effort between Blackstone and Sattva Developers, submitted its draft red herring prospectus (DRHP) in March, outlining plans to raise a total of ₹6,200 crore through an IPO. With the pre-IPO phase complete, the REIT intends to gather the remaining ₹4,800 crore via public issuance scheduled for July-August.
Upon its listing, KRT is set to become Asia’s second-largest REIT by size and India’s largest based on gross asset value. According to its DRHP, KRT’s portfolio encompasses 30 premium Grade-A office properties spread across six key Indian cities: Mumbai, Hyderabad, Bengaluru, Chennai, Gurugram, and GIFT City. As of September 2024, the total managed space is 48.1 million sq ft, with 37.1 million sq ft already completed, 2.8 million sq ft under construction, and an additional 8.2 million sq ft slated for future development.
India’s REIT market gained initial momentum with the Embassy Office Parks REIT IPO in April 2019, a joint venture of Blackstone and Embassy Group, which raised ₹4,750 crore and manages 33 million sq ft. This was followed by Mindspace Business Parks REIT, supported by K Raheja Corp and Blackstone, which brought in ₹4,500 crore and oversees 34.8 million sq ft. Furthermore, Blackstone also backed Nexus Select Trust, India’s inaugural retail-focused REIT, which manages 10.3 million sq ft. KRT’s upcoming IPO will be the fifth REIT to list in India, joining Embassy Office Parks REIT, Mindspace Business Parks REIT, Brookfield India REIT, and Nexus Select Trust.
The timing of KRT’s fundraising aligns with the sustained robustness and expansion of India’s commercial office market. This growth is fueled by strong demand from global capability centers, IT/ITeS firms, and flexible workspace providers. Moreover, the pre-IPO round underscores the increasing sophistication of India’s capital markets and a rising appetite among domestic investors for income-generating, asset-backed financial instruments.
