Knowledge Realty Trust REIT: Check IPO Date, Lot Size, Price & Details

Introduction:

Knowledge Realty Trust is registered in the Republic of India as a contributory, determinate, and irrevocable trust, established on October 10, 2024, at Mumbai, Maharashtra, India, under the Indian Trusts Act, 1882. It further secured registration as a real estate investment trust (REIT) on October 18, 2024, under the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014, with registration number IN/REIT/24-25/0006.

The Trust is sponsored by BREP Asia SG L&T Holding (NQ) Pte. Ltd (the “Blackstone Sponsor”) and Sattva Developers Private Limited (the “Sattva Sponsor”). Knowledge Realty Office Management Services Private Limited (formerly known as Trinity Office Management Services Private Limited) acts as the Manager, and Axis Trustee Services Limited serves as the Trustee.

KRT's primary investment objective is to own, operate, and invest in rent or income-generating real estate assets and other permitted assets in India, in accordance with the SEBI REIT Regulations. This includes investments in holding companies, special purpose vehicles (SPVs), investment entities, and real estate properties (completed or otherwise), as well as securities, interest rate derivatives, or transferable development rights.

Upon listing, KRT is expected to emerge as the largest office REIT in India based on a Gross Asset Value (GAV) of ₹619,989 million as of March 31, 2025, and a Net Operating Income (NOI) for FY2025 of ₹34,322.67 million. It is also projected to be the second largest office REIT in Asia and one of the largest globally by Leasable Area as of March 31, 2025.

The Trust's portfolio consists of 29 Grade A office assets totaling 46.3 million square feet (msf) as of March 31, 2025, comprising 37.1 msf of Completed Area, 1.2 msf of Under Construction Area, and 8.0 msf of Future Development Area. KRT's assets are geographically diversified across 6 cities – Hyderabad, Mumbai, Bengaluru, Chennai, Gurugram, and GIFT City (Ahmedabad) – collectively representing over 86.5% of India’s office supply and gross absorption from CY2016 to Q1CY2025

IPO Details:

Objectives of Issue:

• Partial or full repayment or prepayment of certain financial indebtedness of the Asset SPVs and the Investment Entities
• Meeting general corporate purposes

Key Strengths:

• Geographical Diversity: KRT will be the most geographically diverse Indian office REIT, with assets spread across 6 key cities. A substantial 95.6% of its GAV (as of March 31, 2025) is concentrated in India's top-performing office markets: Bengaluru, Hyderabad, and Mumbai (Portfolio Core Markets). This multi-market presence offers flexible leasing options and resilience.
• High-Quality, Diversified Portfolio: The portfolio consists of 29 Grade A office assets, including 6 city-center offices and 23 business parks/centers. KRT will command the largest city-center office portfolio among listed Indian REITs. The assets are considered superior due to their scale, accessible locations, robust infrastructure, and sustainability initiatives, making the platform difficult to replicate.
• Strong Tenant Base and Stable Cash Flows: With over 450 tenants as of March 31, 2025, KRT boasts a diversified tenant mix, including prominent multinational and Fortune 500 companies, as well as Global Capability Centers (GCCs). For the month ended March 31, 2025, 74.1% of Gross Rentals were from multinational tenants, 43.6% from GCCs, and 38.2% from Fortune 500 companies. The portfolio also has a high Committed Occupancy of 91.4% (highest among listed Indian office REITs) and a long Weighted Average Lease Expiry (WALE) of 8.4 years (highest among Indian office REITs post-listing), ensuring consistent and predictable cash flows.

Risks

• No Assurance of Distributions to Unitholders- There is no assurance or guarantee of any distributions to the Unitholders. Distributions are based on Net Distributable Cash Flows (NDCF) available, and the NDCF framework may change if SEBI regulations are amended. While the Manager is required to distribute at least 90% of the NDCF quarterly, the distribution mix (dividends, interest on shareholder loan, shareholder loan repayment) may vary and affect the tax treatment for Unitholders. Factors such as debt servicing, unforeseen expenses, compliance with loan agreements, and tenant defaults can adversely affect the ability to make distributions or decrease their level.
• Risks Associated with High Debt Utilization The Knowledge Realty Trust and its Asset SPVs and Investment Entities have incurred substantial indebtedness, with total borrowings amounting to ₹197,921.74 million as of March 31, 2025, and ₹208,276.75 million as of July 2, 2025. A significant portion (88.29% as of March 31, 2025) of these borrowings are on a floating rate basis, making the Trust vulnerable to increases in interest rates, which could significantly raise finance costs and reduce profitability. High debt service obligations could reduce funds available for distribution to Unitholders and capital investments. Furthermore, financing agreements may contain restrictive covenants that limit flexibility in managing the business or using cash and assets
• Limited Operating History of the Trust- Knowledge Realty Trust itself was recently settled (October 2024) and registered (October 2024) and therefore has a limited operating history. While most portfolio assets have existed for years, there's no assurance of successful or profitable operation of the Trust itself

Financial Snapshot: