Blackstone‑backed Sattva Group’s REIT Raises ₹1,400 Cr in Landmark Pre‑IPO Round

Revenue-Rich Real Estate Vehicle Prepares for Mega IPO

Knowledge Realty Trust (KRT), India’s upcoming REIT sponsored by Bengaluru-based Sattva Group and global investment firm Blackstone, has successfully raised ₹1,400 crore in a pre‑IPO placement. This marks the first-ever pre-IPO round by a REIT in India, setting a new benchmark in institutional fundraising 

The funds were raised from a select group of domestic high-net-worth individuals (HNIs) and family offices, including notable participation from investors like JM Financial, Radhakishan Damani, and 360 One Wealth Management 

With KRT having already filed its Draft Red Herring Prospectus (DRHP) in March to raise ₹6,200 crore, this infusion indicates strong market confidence. The remaining ₹4,800 crore is expected to come from the main IPO scheduled between July–August 

Portfolio Strength Makes it India’s Largest REIT

KRT’s asset portfolio comprises 30 Grade‑A office properties across six major urban centers—Mumbai, Bengaluru, Hyderabad, Chennai, Gurugram, and GIFT City—totaling 48.1 million sq. ft., of which 37.1 million sq. ft. is already operational and 2.8 million sq. ft. under construction 

With approximately 90% of leasable space occupied by marquee tenants—76% MNCs and 45% global capability centers—the trust is poised to become not only the largest in India but the second-largest office REIT in Asia by gross asset value and net operating income 

Commercial Real Estate Resilience Supports IPO Path

India’s office market continues to show resilience, fuelled by robust demand from sectors like IT, ITeS, and GCCs, bolstering investor appetite for commercial REITs. According to Vestian, up to 60% of office stock across the top seven cities is currently REIT-eligible

This pre-IPO success not only demonstrates investor confidence but also underscores the increasing maturity of India’s capital markets in supporting asset-backed investment vehicles.

Analyst Insights: Why KRT is a Game Changer

Rupesh Mehta, Senior Analyst at PropEdge Research:

“A pre‑IPO round of this scale clearly shows demand for institutional-grade commercial assets—and KRT’s lease profile ticks all boxes.”

Nisha Rao, REIT Specialist at Vestian India:

“Sattva‑Blackstone’s decision to delay the IPO and raise early capital demonstrates smart structuring. The geographic diversification and high occupancy provide a stable yield base.”

Vikram Singh, Equity Strategist at Evergreen Securities:

“At an estimated gross asset value of ₹60,000 crore, KRT will redefine India’s REIT landscape—delivering both scale and yield.”

Market Context: REIT Trajectory in India

India currently has four listed REITs: Embassy Office Parks, Mindspace Business Parks, Brookfield India REIT, and Nexus Select The upcoming KRT IPO will mark the fifth, and will stand out for its size, landlord portfolio, and brand equity.

Blackstone, which started REIT-building in India with Embassy Office Parks in 2019, has since backed multiple subsequent listings—underlining institutional commitment to the sector .

Use of Proceeds: Strengthening the Balance Sheet

According to filings, the proceeds from the public IPO (₹4,800 crore) will be used to repay debt and for general corporate purposes, enhancing KRT’s financial flexibility 

Investor Outlook: What’s Next?

• Institutional Investors: Yield-seeking entities may be drawn to KRT’s 90% leased asset pool and blue-chip tenant base.

• Retail Investors: Likely to be bullish, though wary of valuations given the complex REIT structure. KRT’s first-mover advantage in the asset‑backed category may work in its favor.

• Market Sentiment: A well-subscribed pre-IPO could positively impact their IPO subscription and aftermarket performance.

The ₹1,400 crore pre-IPO round by Knowledge Realty Trust confirms robust institutional faith in India’s growing commercial real estate sector. With a geographically diversified, lease-secure portfolio and strategic capital deployment, KRT is set to be a landmark IPO in India’s REIT space. Retail and institutional investor sentiment hinges on valuation and yield stability—but the stage is set for a defining market entry.