IPO-Bound Knowledge Realty Trust's Net Operating Income Rises 19% To Rs 3,432 Crore In FY25

Knowledge Realty Trust, which is launching its REIT public issue next week, has posted a 19% growth in its net operating income to Rs 3,432.26 crore for the last financial year. Knowledge Realty Trust, which is a real estate investment trust sponsored by realty firm Sattva Group and Blackstone, had posted a NOI of Rs 2,882.08 crore in the 2023-24 fiscal.

The company will launch its Initial Public Offering on Aug. 5 while the issue will close on Aug. 7. It has fixed a price band of Rs 95 to Rs 100 per unit for its Rs 4,800 crore REIT-IPO. The issue comprises a fresh issuance of units up to Rs 4,800 crore by Knowledge Realty Trust.

In early March, KRT filed the draft red herring prospectus with SEBI to launch an IPO and list the REIT on stock exchanges. This is part of a strategy to monetise its 30 prime office assets across major cities.

Initially, the company planned to raise a total of Rs 6,200 through a public issue. Last month, it raised Rs 1,400 crore from investors. Accordingly, the issue size has been reduced to Rs 4,800 crore.

"We are a leading office platform in India and upon listing, we will be the largest office REIT in India in terms of GAV of Rs 61,998.9 crore as of March 31, 2025, and by NOI for FY25 of Rs 3,432.26 crore" KRT said in its red herring prospectus.

KRT has 46.3 million square feet of leasable area, comprising 37.1 million square feet of completed area, 1.2 million square feet of under construction area and 8 million square feet of future development area as of March 31, 2025.

At present, there are four listed REITs (real estate investment trusts) in India -- Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust.

Apart from Nexus Select Trust, the other three REITs are backed by rent-yielding office assets. Nexus owns a large portfolio of retail real estate spaces.

Bengaluru-based Sattva Developers has so far constructed 74 million sq ft across seven Indian cities in commercial, residential, co-living, co-working, hospitality, and data centre sectors.

An additional 75 million sq ft is in the planning and implementation stage.

Blackstone, one of the leading global investment firms, has a huge exposure in the Indian real estate market. The two sponsors have decided to adopt a brand-neutral strategy to grow the KRT portfolio inorganically through third-party acquisitions.