India’s Knowledge Realty Trust has sought approval for an initial public offering of 62 billion rupees ($948.5 million), in what could be the nation’s largest real estate investment trust listing.
The REIT, backed by Blackstone and Sattva Developers, has offices in key Indian cities including Bengaluru, Mumbai, Hyderabad and Chennai. The proceeds from the sale would be used mostly for repayment of debt.
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.
Knowledge Realty is the largest REIT in India by gross asset value, according to the draft red herring prospects filed with India’s market regulator. It reported a net operating income of about 29 billion rupees in the last fiscal year, and has a committed occupancy of 89.9% as of December.
Morgan Stanley India, Kotak Mahindra Capital, Axis Capital and BofA Securities India will manage the sale among others.
