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India’s Knowledge Realty Trust has applied for approval to launch an initial public offering (IPO); Know details
REIT IPO, Knowledge Realty Trust
India’s Knowledge Realty Trust has applied for approval to launch an initial public offering (IPO) worth 62 billion rupees ($711 million), potentially becoming the country’s largest real estate investment trust (REIT) listing.
The REIT, backed by Blackstone Inc. and Sattva Developers Pvt., owns office spaces in major Indian cities such as Bengaluru, Mumbai, Hyderabad, and Chennai. The proceeds from the offering will primarily be used to reduce outstanding debt.
As India emerges as a key market for equity sales, REITs are becoming increasingly popular due to their potential for delivering attractive returns. Currently, there are four listed REITs in India, including Brookfield India and Embassy Office Parks.
According to the draft red herring prospectus filed with India’s market regulator, Knowledge Realty is the largest REIT in India by gross asset value. In the last fiscal year, it reported a net operating income of approximately 29 billion rupees ($333 million) and maintained a committed occupancy rate of 89.9% as of December.
The IPO will be managed by Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, and BofA Securities India, among others.
