Blackstone-backed office platform Knowledge Realty REIT has set a new record for India’s real estate investment trust (REIT) market by raising INR4,800 crore (€470m) in an initial public offering, which was 13 times oversubscribed.
Knowledge Realty REIT’s portfolio is the largest in terms of gross asset value in India, and the second biggest in Asia.
Created in 2018, Knowledge Realty was a partnership with Blackstone holding a 55% stake and its Indian partner, Sattava Group, holding 45%. Following the listing, Blackstone’s stake will decrease to 45% while Sattava’s will fall to 35%.
Blackstone and Sattava have retained a combined stake of 80% in the vehicle, which owns a INR619bn crore portfolio of 30 office buildings located in six cities, including Hyderabad, Bangalore and Mumbai.
Asheesh Mohta, senior managing director in Blackstone Real Estate said Blackstone was an early believer in the sector, starting out in 2011 and had since become the largest owner of office in India. “Knowledge Realty Trust is a testament to our conviction in the Indian office market and commitment to introducing compelling opportunities to investors,” he added.
Shirish Godbole, CEO of Knowledge Realty Trust REIT, said: “REITs in India have truly come of age - evolving from a novel concept to a trusted, mainstream investment vehicle. The growing participation from both institutional and retail investors is a testament to the confidence in the asset class and the underlying fundamentals of India’s commercial real estate sector.
“As a product, REITs offer the ideal blend of stability and growth - and we believe we are just at the beginning of a long-term, value-driven journey for investors and the economy alike.”
Quaiser Parvez, COO of Knowledge Realty Trust REIT, said: “The total number of applications we’ve received for Knowledge REIT is more than the sum total of all past Indian REITs put together. This isn’t just a milestone — it’s a resounding vote of confidence in REITs as a product of stable income and growth avenue.
“More importantly, it reflects the growing conviction in the structural strength of India’s premium office space — a long-term, secular growth story that is firmly poised to benefit tremendously from India’s extraordinary growth story.”
The trust, India’s fourth listed office REIT and its largest and most subscribed REIT IPO to date, is set to begin trading on Indian stock exchanges on 18 August.
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