IPO Report : Knowledge Realty Trust By Choice Broking
Salient features of the IPO:
* Knowledge Realty Trust (KRT REIT), backed by Estime Sponsors - Sattva Developers Pvt Ltd., BREP Asia SG L&T Holding (NQ) Pvt. Ltd is planning to raise Rs. 4,800cr through an REIT IPO, which will open on 5 th Aug. and closes on 7 th Aug. 2025. The price band is Rs. 95 - 100 per unit.
* The issue consists of fresh issue. Of the net proceeds from the fresh issue, Rs. 4,640mn will be utilized for the repayment/prepayment of existing debt availed by its asset SPVs.
* As of March 31 2025, KRT’s portfolio includes 29 Grade A office assets, totaling 46.3 million square feet of leasable area, of which 37.1 msf is fully completed and operational, 1.2 msf is under construction, and 8.0 msf is allocated for future development.
Key competitive strengths:
* India’s largest office REIT by Gross Asset Value (GAV) and Net Operating Income (NOI)
* Most geographically diverse office REIT in India
* Located in India • One of the world’s fastest-growing major economies
* Services sector remains the key economic driver
* Top-tier Grade A office buildings
* Diversified tenant base with leading GCCs and Indian corporates
* Resilient and scalable business model
* Brand-agnostic platform
* Sponsors combining global capital and real estate expertise with local execution capability
* Fully integrated platform
* Sustainability embedded across operations
Risk and concerns:
* Weakness or unfavorable global economic outlook
* Inability to maintain the desired occupancy levels
* Unfavorable rental rates
* Delay in the execution of under construction areas
* Unfavorable interest/finance costs
* Unfavorable change in government policies & regulations
Peer comparison and valuation:
At the higher price band of Rs. 100 per share, KRT REIT’s unit is valued at 71.42X of its gross asset value per share, which is at a discount to its peers.
* India’s new office-focused REIT, Knowledge Realty Trust (KRT), will become the largest office REIT in India by Gross Asset Value—Rs.619,989 million as of March 31, 2025—and the one with the highest Net Operating Income, at Rs.34,322.7 million (Rs.3,432 crore) for FY 2025—a 19 % year-on-year jump—placing it among Asia’s fastest-growing and second-largest REITs by leasable area.
• KRT’s portfolio includes 29 Grade A office properties, covering 46.3 million square feet (msf) as of March 31, 2025. Of this, 37.1 msf are fully operational, 1.2 msf are under construction, and 8.0 msf are earmarked for future development. The assets consist of a mix of six high-quality city-centre offices and 23 business parks/IT campuses.
• These properties span six major Indian cities—Hyderabad, Mumbai, Bengaluru, Gurugram, Chennai, and GIFT City (Ahmedabad). Nearly 95 % of the REIT’s value lies in Bengaluru, Hyderabad, and Mumbai—India’s most dynamic office markets in both total stock and absorption activity from 2016 through Q1 2025.
• With 91.4 % committed occupancy as of March 2025, KRT supports over 450 tenants, including multinational corporations, Fortune 500 firms, and Global Capability Centres (GCCs). 76 % of its leases are with global corporations, and 45 % of rental income originates from GCCs. The weighted average lease expiry (WALE) is approximately 8.6 years, reflecting long-term income visibility.
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