India's largest REIT IPO: Blackstone, Sattva Developers file DRHP with Sebi

The Trust, which is a joint venture between the Sattva Group and Blackstone, in its draft red herring prospectus (DRHP) said that it aims to raise up to Rs 6,200 crore from the public offering

Blackstone and Sattva Developers, the sponsors of Knowledge Realty Trust, have filed the draft papers with the Securities and Exchange Board of India (Sebi). The Trust, which is a joint venture between the Sattva Group and Blackstone, in its draft red herring prospectus (DRHP) said that it aims to raise up to Rs 6,200 crore from the initial public offering (IPO).

 

According to the DRHP, Knowledge Realty Trust (KRT) is the largest REIT in India by Net Operating Income (NOI) and Gross Asset Value (GAV)/Valuation, and the second largest in Asia by leasable area. It has a portfolio that includes 48 million sq. ft. (37 million sq. ft. completed) across 30 Grade A office assets in 6 cities, making it India’s most geographically diverse Office REIT. Almost 95 per cent of the value is concentrated in the top 3 office markets of India: Bengaluru, Hyderabad, and Mumbai.

 

This issue is being made through the Book-building process.

 

"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," reads the DRHP.

 

The units, as per the DRHP, are to be listed on the BSE and the National Stock Exchange of India (NSE). Knowledge Realty Trust has received in-principle approvals from the Stock Exchanges for the listing of the units.

 

KFin Technologies is the registrar for the issue. The book-running lead managers include Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, ICICI Securities, SBI Capital Markets, Morgan Stanley India Company, JM Financial, and IIFL Capital Services.

 

According to the DRHP, the net proceeds from the issue will be utilised for the following purposes: partial or full repayment or prepayment of certain financial indebtedness of the Asset SPVs and the Investment Entities, as well as for general purposes.

 

Knowledge Realty Trust, a real estate investment trust, was settled on October 10, 2024, in Mumbai, Maharashtra, India, as a contributory, determinate, and irrevocable trust under the provisions of the Indian Trusts Act, 1882. Knowledge Realty Trust has been settled by the Manager (on behalf of each of the Sponsors) for an aggregate initial sum of Rs 0.1 million. As of the date of this Draft Offer Document, BREP Asia SG L&T Holding (NQ) Pte Ltd (the Blackstone Sponsor) and Sattva Developers (the Sattva Sponsor) are the sponsors of Knowledge Realty Trust.

 

Knowledge Realty Office Management Services Private has been appointed as the manager to Knowledge Realty Trust. Axis Trustee Services has been appointed as the trustee to Knowledge Realty Trust.