Knowledge Realty Trust, a real estate investment trust (REIT) sponsored by US-based fund house Blackstone and Bengaluru’s Sattva Group, has filed the draft red herring prospectus (DRHP) for an initial public offering (IPO).
The REIT is expected to raise between Rs 7,000 crore and Rs 8,000 crore via the IPO, sources said, adding that the public issue will be the largest in the REIT space. The trust has a gross asset value of Rs 60,000 crore, they said.
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The REIT is the second-largest in Asia in terms of leasable area, and the largest one in the country if net operating income and gross asset value (GAV) are considered.
Blackstone’s first REIT IPO in India was the Embassy Office Parks public issue in March 2019, which raised Rs 4,750 crore. Mindspace Business Parks REIT raised Rs 4,500 crore through a public issue in July 2020.
The Blackstone Sattva REIT has a portfolio of 48 million square feet (37 million sq ft already completed) across 30 Grade A office assets in six cities. Almost 95% of the value is concentrated in top three office markets – Bengaluru, Hyderabad and Mumbai, the REIT said in the DRHP.
The key assets in the portfolio include Sattva Knowledge City, a 7.3 million sq ft property, Sattva Knowledge Park, a 3.3 mn sq ft property in Hyderabad, and a 0.7 mn sq ft property owned by Blackstone in Mumbai.
This is the fourth REIT IPO coming from Blackstone’s real estate business after Embassy Office Parks, Mindspace Business Parks and Nexus Select Trust. Blackstone has recently listed its hotel venture Ventive Hospitality.
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The new REIT will also be a brand-neutrality platform where other developers can pool in their assets, sources said. “Apart from acquiring assets inorganically, the REIT would also want to give opportunity to other developers to bring in their assets and gain from the REIT story,” said one of the sources.
Sattva Developers has constructed 74 million square feet across seven Indian cities.
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