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Knowledge Realty Trust and Embassy Office Parks REIT are set to raise a total of around INR 21 billion through bond issuances, reflecting a surge in REIT activity in India. Knowledge Realty Trust will issue bonds maturing in four years, while Embassy Office Parks REIT may opt for five-year or longer notes with put and call options. If completed, December will be the first month when all five listed REITs have accessed the bond market. So far, REITs have raised INR 112.5 billion in 2025, nearly double last year's total.
Two of India's prominent real estate investment trusts are preparing to access the bond market in the coming days to strengthen their capital structure and conclude the year on a strong note. Sources familiar with the matter indicated that Knowledge Realty Trust and Embassy Office Parks REIT plan to collectively raise approximately INR 21 billion (USD 232.8 million) through shorter-term and medium-term bonds. Advertisement
Bonds offer greater flexibility compared with traditional bank loans, allowing trusts to deploy funds across multiple income-generating properties. Knowledge Realty Trust intends to raise around INR 16 billion through instruments maturing within four years, while Embassy Office Parks REIT is considering notes with tenors of five years or more, including put and call options, according to the sources, who requested anonymity due to the confidential nature of the discussions. Both trusts did not respond to requests for comment.
Completion of these issuances would make December the first month in which all five listed REITs in India have issued bonds, highlighting the increasing reliance on capital markets to fund property portfolios. According to Prime Database, REITs have already raised INR 112.5 billion through bond issuances in 2025, nearly double the INR 59 billion raised in 2024. Earlier this week, Brookfield India Real Estate Trust successfully conducted its first debt issuance, raising INR 20 billion through a five-year bond, showing sustained investor appetite for REIT securities.
The surge in debt issuances reflects broader trends in the Indian commercial real estate sector, where REITs are leveraging bonds to fund new acquisitions, refinance existing debt, and maintain liquidity for operational flexibility. Analysts point out that shorter- and medium-term bonds are particularly attractive for institutional investors seeking steady returns, further supporting REIT growth in the country.
Source: Reuters
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