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Blackstone and Sattva Group have applied for an INR 7,000 crore IPO for their real estate investment trust (REIT), Knowledge Realty Trust, set to be India's largest office REIT. The 48.1 million sq. ft. portfolio, with 90% occupancy, spans Bengaluru, Hyderabad, and Mumbai, with 76% MNC tenants. Funds will support debt repayment, acquisitions, and corporate expenses. Meanwhile, Blackstone is allegedly finalizing a USD 400 million deal to acquire South City Mall, Kolkata, expanding its retail footprint. The move aligns with Blackstone's growing presence in India's commercial and retail real estate market.
Blackstone, a leading private equity firm, and real estate developer Sattva Group have jointly applied for an initial public offering (IPO) of their real estate investment trust (REIT), Knowledge Realty Trust. The REIT is set to raise over INR 7,000 crore, with expectations of listing in the coming months. Sources indicate that the IPO will initially raise INR 6,200 crore, with an option to extend by 20%, depending on investor demand, bringing the total issue size beyond INR 7,000 crore. Advertisement
Proceeds from the offering will primarily be directed toward debt repayment, acquiring new assets, and general corporate expenses, as outlined in filings with the Securities and Exchange Board of India (SEBI). Knowledge Realty Trust, with a gross asset value of INR 59,445 crore as of September last year, is positioned to become India's largest office REIT by asset size.
The Knowledge Realty Trust portfolio encompasses 48.1 million square feet of leasable space across key commercial hubs such as Bengaluru, Hyderabad, and Mumbai. Of this, 37.1 million square feet consists of completed properties with a committed occupancy rate of 90%. Notably, 76% of its tenants are multinational corporations (MNCs), with 45% belonging to the global capability centre (GCC) segment. The net operating income (NOI) for the first half of the 2024-25 financial year was reported at INR 1,632 crore.
The REIT holds 30 Grade A office parks across six cities, with notable assets including Sattva Knowledge City (7.3 million square feet), One International Centre (1.8 million square feet), Cessna Business Park (4.2 million square feet), and Sattva Global City (12.3 million square feet). This IPO marks Blackstone's ongoing expansion in India's REIT sector, where it has previously backed Embassy Office Parks REIT and Mindspace Business Parks REIT.
In related news, according to multiple reports, Blackstone Inc. is said to be in the final stages of acquiring South City Mall in Kolkata for up to USD 400 million. South City Mall is owned by South City Projects (Kolkata) Ltd., a consortium of several real estate developers based in Kolkata, and is recognised as the largest shopping mall in eastern India. The mall hosts prominent brands such as Zara, Sephora, and Marks & Spencer, along with cinemas and a gaming arena.
Blackstone's REIT, Nexus Select Trust, already oversees a portfolio of 18 malls with a gross leasable area (GLA) of 10.4 million sq ft spread across 14 cities in India, two hotel assets with a total of 354 keys, and three office assets with a GLA of approximately 1.3 million square feet. The South City Mall deal, if completed, will mark Blackstone's entry into Kolkata's retail sector.
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