Blackstone-Sattva JV to Launch ₹7,000-Crore REIT IPO: India’s Largest Yet!

• Biggest REIT in India: Knowledge Realty Trust poised to revolutionize commercial real estate.
• A game-changer for the market: Expected to raise ₹7,000 crore with 48 million sq ft of leasable space.
• Blackstone-Sattva partnership: A new chapter in India’s booming real estate investment trust sector.

India’s Largest REIT to Hit the Market Soon!

In a landmark move that will reshape India’s real estate investment trust (REIT) landscape, Blackstone and Sattva Group are preparing to file the draft IPO papers for their new REIT, Knowledge Realty Trust, by mid-February. With a staggering ₹7,000 crore target and 48 million sq ft of leasable space, this REIT is set to become India’s biggest and Asia’s second-largest.

The IPO will allow Knowledge Realty Trust to offer investors a stake in some of India’s most prime commercial properties across major cities, including Mumbai, Bengaluru, Hyderabad, and Pune. Blackstone, the world’s largest private equity real estate firm, will hold a 55% majority stake, with Sattva retaining the remaining share.

A Powerhouse of Commercial Properties

The portfolio for Knowledge Realty Trust will be nothing short of impressive, with 30 office properties in prime locations, such as One BKC, One International Centre, and One World Centre in Mumbai; Sattva Knowledge City and Sattva Knowledge Park in Hyderabad; and Cessna Business Park and Exora Business Parks in Bengaluru. This diverse and strategically located portfolio positions the trust to dominate the Indian commercial real estate market.

Timeline and Market Impact

• IPO Filing: Expected by mid-February 2025, with a public offer anticipated by June 2025.
• Launch Date: The Blackstone-Sattva REIT aims to go live on March 22, 2024.

The trust will add to the growing number of REITs in India, joining the ranks of previous offerings from Blackstone and other players. This will mark the fifth REIT in India, continuing the trend of private equity firms tapping into India’s rapidly expanding commercial real estate sector.

Blackstone’s REIT Legacy in India

Blackstone has been a major player in India’s REIT market, having launched the country’s first-ever REIT in 2019 with the Embassy Office Parks IPO, which raised ₹4,750 crore. Embassy REIT currently manages 38.4 million square feet of space. Blackstone’s subsequent ventures, like Mindspace Business Parks REIT and Nexus Select Trust, have further strengthened its position as the largest landlord of commercial office space in India.

Now, Knowledge Realty Trust is set to surpass its predecessors, consolidating Blackstone’s influence in India’s commercial real estate sector.

What’s Next for India’s REIT Market?

The entry of Knowledge Realty Trust signals a new era for India’s real estate investment landscape, with significant capital influx expected to reshape the sector. As Blackstone and Sattva gear up for a massive public offering, all eyes will be on the Indian commercial real estate market and its investment potential.