Knowledge Realty Trust, India’s largest Real Estate Investment Trust (REIT) backed by Blackstone Inc. and Sattva Developers, is planning to raise ₹16 billion (approximately $181 million) through its first domestic rupee bond sale. This marks a major milestone in India’s commercial real estate sector as REITs gain traction and diversify their funding sources amid strong market growth.
Bond Issuance Details
The REIT will issue a three-year rupee-denominated bond with a coupon rate of 7.2% per annum, paid quarterly. The bond has received a AAA rating with a stable outlook from rating agencies Crisil and ICRA, reflecting strong credit quality. Barclays Plc is managing the issuance, which will open for bidding on September 25, 2025. Large mutual funds are expected to act as anchor investors in this debut offering.
Knowledge Realty Trust’s Asset Portfolio and Recent Capital Raise
Recently, Knowledge Realty Trust completed a successful initial public offering (IPO), raising ₹48 billion. The trust owns premium office and business park assets across six major Indian cities, including Bengaluru, Mumbai, Hyderabad, Chennai, Ahmedabad, and Gurugram. As of March 2025, the gross asset value of its portfolio was approximately ₹620 billion, with a healthy occupancy level of around 91%. The trust’s portfolio includes 27 operational projects totalling more than 37 million square feet, plus several ongoing developments adding over 9 million square feet.
Rising Growth and Investor Confidence in India’s REIT Market
India’s REIT sector is poised for significant expansion, driven by regulatory support and increasing institutional investment. According to Avendus Capital, the sector’s assets under management (AUM) are expected to double from around $100 billion to $200 billion by 2030. The growing demand for quality commercial office space and the increasing maturity of the REIT framework support this growth outlook.
The FlexInsights Take
This bond issuance is a strong indicator of the growing maturity of India’s commercial real estate capital markets. It offers investors a stable, AAA-rated fixed income instrument while helping the REIT diversify funding beyond equity. The move underlines rising investor confidence in REITs and sets a precedent for further bond issuances in the sector.
