Knowledge Realty Trust: A New Era for India’s REIT Market
India’s real estate landscape is evolving, and the recent launch of Knowledge Realty Trust marks a significant milestone in this transformation. As the country’s fourth Real Estate Investment Trust (REIT), Knowledge Realty Trust has garnered considerable attention from investors, reflecting a growing appetite for income-generating commercial real estate.
Subscription Status: A Positive Response
The Knowledge Realty Trust IPO opened for subscription on August 5, 2023, and will remain accessible until August 7. On Day 2 of the subscription period, the issue was subscribed 1.14 times overall, showcasing a robust interest from the investment community.
As of 10:08 AM on Day 2, the subscription breakdown revealed that the Institutional Investor segment had subscribed to 66% of its allotted 11.36 lakh shares. This indicates a moderate yet consistent participation from qualified institutions. In contrast, the Other Investors category, which includes corporates and individual non-retail applicants, demonstrated a stronger enthusiasm, subscribing to 1.72 times their allocated quota. This diverse interest underscores the potential of Knowledge Realty Trust as a viable investment option.
IPO Details: A Comprehensive Offering
The Knowledge Realty Trust IPO is a substantial public issue valued at Rs 4,800 crore. The price band for the offer has been set between Rs 95 and Rs 100 per unit, with a minimum bid requirement of 150 units. The REIT is expected to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), with a tentative listing date of August 18.
Prior to the public offering, the REIT successfully raised Rs 1,620 crore from anchor investors, attracting notable backers such as the Rakesh Jhunjhunwala Trust, Life Insurance Corporation of India (LIC), and global investment firms like Capital Group, Fidelity, and GIC. This strong backing from reputable investors adds credibility to the offering and enhances investor confidence.
The IPO is being conducted through a book-building process in compliance with Securities and Exchange Board of India (SEBI) regulations. Notably, up to 75% of the issue (excluding the Strategic Investor portion) will be allocated to institutional investors, while approximately 25% is reserved for non-institutional investors.
Strategic Use of Proceeds
The proceeds from the Knowledge Realty Trust IPO will be strategically utilized for various purposes, including the repayment of debt, acquisition of stakes in certain assets, and general corporate needs. This prudent financial planning is expected to bolster the trust’s operational capacity and enhance its growth trajectory.
About Knowledge Realty Trust
Knowledge Realty Trust stands out as India’s largest office REIT by gross asset value, boasting a portfolio valued at Rs 61,998.9 crore as of March 31, 2025. It ranks as the second-largest office REIT globally in terms of total leasable area, highlighting its significant presence in the commercial real estate market.
The trust’s diversified portfolio encompasses 30 Grade A office properties, covering a total of 46.3 million square feet. This includes 37.1 million square feet of completed space, 1.2 million square feet currently under construction, and 8 million square feet reserved for future development.
Knowledge Realty Trust’s assets are strategically located across six major Indian cities—Hyderabad, Mumbai, Bengaluru, Chennai, Gurugram, and GIFT City (Ahmedabad). The properties are designed with modern amenities, including multi-cuisine food courts, exclusive clubs, wellness and fitness centers, sports facilities, medical clinics, and childcare facilities. As of March 2025, the portfolio boasts a committed occupancy rate of 91.4%, reflecting strong demand for its offerings.
Conclusion
The launch of Knowledge Realty Trust signifies a pivotal moment in India’s REIT market, providing investors with an opportunity to gain exposure to high-quality, income-generating commercial real estate without the need for direct ownership. With a solid subscription response and backing from prominent investors, Knowledge Realty Trust is poised to make a lasting impact on the Indian real estate landscape. As the market continues to evolve, this REIT could serve as a benchmark for future offerings, driving further growth and innovation in the sector.