Knowledge Realty Trust , India's largest Real Estate Investment Trust (REIT) backed by Blackstone Inc. and Sattva Developers, has unveiled plans for its inaugural bond sale in the domestic market. The REIT aims to raise up to ₹16 billion ($181 million) through this strategic financial move.

Bond Details

The proposed bond issuance carries the following key features:

• Duration: Three-year term
• Coupon Rate: 7.2% per annum
• Payment Schedule: Quarterly coupon payments
• Arranger: Barclays
• Credit Rating: AAA with stable outlook (assigned by Crisil Ratings and ICRA)

Recent Milestones

Knowledge Realty Trust has recently marked significant achievements in the Indian real estate market:

1. Successful IPO: Completed a substantial Initial Public Offering (IPO) raising ₹48 billion.
2. Extensive Portfolio: Holds office and business park assets across six Indian cities.
3. Impressive Valuation: Boasts a gross asset value of ₹620 billion as of late March.

Market Outlook

The REIT sector in India is experiencing a surge in popularity, particularly in the commercial real estate segment. According to Avendus Capital, the sector is poised for significant growth:

This ambitious bond sale by Knowledge Realty Trust not only highlights the REIT's financial strategy but also underscores the growing investor confidence in India's commercial real estate market. As REITs continue to gain traction, they are likely to play an increasingly important role in shaping the landscape of real estate investments in India.

The success of this bond issuance could set a precedent for other REITs in the market, potentially opening up new avenues for capital raising in the sector. Investors and market watchers will be keenly observing the outcome of this debut bond sale, as it may indicate broader trends in the REIT and commercial real estate markets in India.

Knowledge Realty Trust (KRT), a prominent player in the real estate investment trust sector, has announced significant fundraising initiatives totaling INR 3,200 crore. The board of KRT's manager, Knowledge Realty Office Management Services Private Limited, approved these measures in a meeting held on September 15, 2025.

Non-Convertible Debentures Issuance

The board has given the green light for raising INR 1,600 crore through the issuance of non-convertible debentures (NCDs) via private placement. The key details of this NCD issuance are as follows:

The NCDs will be issued to eligible investors, including multilateral financial institutions, in one or more transactions, series, or tranches.

Term Loan Facility

In addition to the NCD issuance, KRT has approved availing a term loan facility of up to INR 1,600 crore from Bajaj Housing Finance Limited. This facility includes:

• A primary term loan (lease rental discounting) of INR 1,600 crore
• A flexi term loan sub-limit of INR 200 crore

Future Debt Raising

The board has also granted in-principle approval for future debt raising through various instruments such as non-convertible debentures, commercial paper, and term loans. This approval comes with the condition that the total consolidated net indebtedness of KRT and its portfolio assets should not exceed 25% of the latest available Gross Asset Value.

Security Measures

To secure the NCDs, the following measures will be implemented:

1. A first-ranking pari-passu charge by way of hypothecation will be created by Devbhumi Realtors Private Limited (DRPL) over identified bank accounts and receivables from the property to be mortgaged.
2. A first-ranking pari-passu charge by way of mortgage will be created by DRPL over its identified immovable properties in Hyderabad.
3. DRPL will issue a corporate guarantee as additional security.

Indian REITs Association Membership

In a move to strengthen its industry presence, KRT has received approval to become a member of the Indian REITs Association (IRA). The board has appointed Mr. Shirish Godbole, the Chief Executive Officer of KRT, as the trust's nominee to be appointed on the IRA's board.

These strategic financial decisions demonstrate Knowledge Realty Trust's commitment to growth and its efforts to optimize its capital structure. The fundraising initiatives are expected to provide KRT with the necessary resources to pursue its expansion plans and enhance its portfolio of real estate assets.