Knowledge Realty Trust: A Promising New Entrant in India’s REIT Landscape

India’s real estate market is witnessing a significant transformation, particularly with the introduction of Real Estate Investment Trusts (REITs). Among the latest entrants is Knowledge Realty Trust, which has recently launched its Initial Public Offering (IPO). As the fourth REIT in India, it has garnered considerable attention from investors, reflecting a growing interest in this investment avenue.

Subscription Success

The Knowledge Realty Trust IPO opened for subscription on August 5 and closed on August 7, 2023. By the end of the subscription period, the IPO was oversubscribed 4.69 times overall, indicating robust demand from investors. As of 11:00 AM on the final day, the Institutional Investor segment had subscribed to 1.34 times its allotted shares, showcasing a steady interest from qualified institutions. In contrast, the Other Investors category, which includes corporates and individual non-retail applicants, demonstrated even stronger enthusiasm, subscribing to an impressive 8.95 times their allocated quota.

IPO Details

The public issue is valued at Rs 4,800 crore and has already attracted Rs 1,620 crore from anchor investors, including notable names like the Rakesh Jhunjhunwala Trust and the Life Insurance Corporation of India (LIC). Global investment firms such as Capital Group, Fidelity, and the Abu Dhabi Investment Authority (ADIA) have also shown confidence in the REIT. The offering is structured through a book-building process, adhering to SEBI regulations, with 75% of the issue reserved for institutional investors and 25% for non-institutional investors.

Investors are given the opportunity to gain exposure to income-generating commercial real estate assets without the need for direct ownership. Following the successful launches of Embassy, Mindspace, and Brookfield REITs, Knowledge Realty Trust marks a significant addition to India’s REIT landscape.

Price Band and Listing

The price band for the Knowledge Realty Trust IPO is 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, 2023.

Investment Outlook

Geojit Research has issued a ‘Subscribe’ rating for Knowledge Realty Trust, particularly for long-term investors. The REIT boasts strong fundamentals and promising growth prospects. As of FY25, it is positioned as the largest office REIT in India, with a Gross Asset Value (GAV) of Rs 61,998.9 crore and a Net Operating Income (NOI) of Rs 3,432.27 crore. Its portfolio includes six centrally located office assets and 23 business parks, housing over 450 tenants, including major Indian corporates and global giants like Amazon and Google.

The REIT’s leadership in the office space, combined with its experienced management and sponsors, geographic diversification, and a high-quality tenant base, makes it an attractive investment. Projected NOI growth of approximately 19% over FY26–28E, along with a healthy balance sheet and a low loan-to-value (LTV) ratio, further enhances its appeal. The anticipated dividend yield of 6% to 7% adds to the attractiveness for potential investors.

About Knowledge Realty Trust

Knowledge Realty Trust is distinguished as India’s largest office REIT by gross asset value, with 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. The trust’s diversified portfolio encompasses 30 Grade A office properties, covering 46.3 million square feet, including completed spaces, properties under construction, and future developments.

The assets are strategically located across six major Indian cities—Hyderabad, Mumbai, Bengaluru, Chennai, Gurugram, and GIFT City (Ahmedabad)—and comprise six city offices and 24 business parks. These properties are equipped with modern amenities, including multi-cuisine food courts, wellness centers, and childcare facilities. As of March 2025, the portfolio boasts a committed occupancy rate of 91.4%, reflecting its strong market position.

Conclusion

Knowledge Realty Trust’s IPO marks a significant milestone in India’s evolving REIT landscape. With strong investor interest and a solid portfolio, it presents a compelling opportunity for those looking to invest in income-generating commercial real estate. As the REIT sector continues to grow, Knowledge Realty Trust stands poised to play a pivotal role in shaping the future of real estate investment in India.