Knowledge Realty Trust, which claims to be India’s largest office real estate investment trust (REIT), has sought approval to list its shares on the stock exchanges to raise ₹6,200 crore, according to Bloomberg.
Backed by Blackstone and Sattva Developers, Knowledge Realty’s IPO is likely to be India’s largest REIT listing.
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The company, which is managed by Knowledge Realty Office Management Services, boasts offices in cities like Bengaluru, Mumbai, Hyderabad and Chennai. It says it is India’s largest office REIT based on gross asset value of ₹59,445 crore as of September 2024. It also recorded net operating income of ₹1,632.4 crore in the April-September 2024 period.
Manager Knowledge Realty Office Management Services, on behalf of the Knowledge Realty Trust, reportedly intends to invest ₹5,800 crore from the IPO proceeds in the asset SPVs (special purpose vehicles) and the investment entities, towards the repayment of debt.
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The total outstanding net borrowings availed by the asset SPVs and investment entities was ₹20,197.4 crore as of September 2024.
Shares of Knowledge Realty Trust are proposed to be listed on BSE and NSE.
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The book running lead managers handling the public issue are Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, ICICI Securities, IIFL Capital Services, JM Financial, Morgan Stanley India Company, and SBI Capital Markets.
India is emerging as a key market for equity sales and REITs are gaining popularity due to their potential to generate attractive returns. There are currently four listed REITs in India, including Brookfield India and Embassy Office Parks, according to Bloomberg.
