Knowledge Realty Trust held a board meeting on January 12, 2026, where directors approved several significant corporate restructuring initiatives and financial proposals. The meeting, conducted by Knowledge Realty Office Management Services Private Limited as the trust's manager, addressed key strategic decisions requiring unitholder approval.

Borrowing Authorization and Banking Arrangements

The board authorized the trust and its portfolio entities to borrow funds with specific parameters and conditions. The borrowing framework establishes clear limits and operational guidelines for future financial activities.

Corporate Restructuring Initiatives

The board approved multiple demerger proposals aimed at streamlining business operations and enhancing corporate efficiency. These restructuring initiatives require regulatory and governmental approvals, including National Company Law Tribunal consent.

Key restructuring decisions include:

• Devbhumi Realtors Private Limited Demerger: Approved restructuring of this special purpose vehicle to improve operational efficiency
• One International Center Private Limited Demerger: Authorized demerger of the Mumbai property holding entity
• New Subsidiary Incorporation: Approved creation of a wholly-owned subsidiary under One International Center Private Limited
• Share Capital Reduction: Approved scheme of arrangement for One World Center Private Limited to reduce share capital

Extraordinary Meeting Schedule

The board scheduled the first extraordinary meeting of unitholders to seek approval for the proposed initiatives. The meeting arrangements reflect modern corporate governance practices with digital participation options.

Regulatory Compliance and Next Steps

All approved proposals remain subject to unitholder approval at the upcoming extraordinary meeting. The trust will issue a separate notice containing comprehensive details about the meeting agenda, voting procedures, and relevant documentation. The board meeting commenced at 11:00 AM IST and concluded at 11:30 AM IST, with all decisions properly documented for regulatory compliance.

The trust will make additional information available on its official website at www.knowledgerealtytrust.com , ensuring transparent communication with stakeholders regarding these significant corporate developments.

Kotak Institutional Equities has initiated coverage on Knowledge Realty Trust with an 'add' rating and target price of ₹132.00, positioning the real estate investment trust as a strategic play on India's recovering office market. The brokerage expects the REIT to deliver strong growth driven by favorable market dynamics and operational improvements.

Portfolio Overview and Market Position

Knowledge Realty Trust operates as one of India's largest office REITs, managing a comprehensive portfolio across six cities. The company's asset base demonstrates strong fundamentals with high occupancy rates and strategic development pipeline.

Financial Projections and Growth Outlook

Kotak projects robust financial performance for Knowledge Realty Trust, expecting a 14% compound annual growth rate in net operating income over FY2025-28E. The brokerage estimates revenue from operations will expand significantly during this period.

Kotak estimates that by September 2027, the gross asset value will reach ₹69,500.00 crore, with 91% contribution from office assets and the balance from solar power and maintenance services.

Key Growth Drivers

The brokerage has identified several factors that will drive Knowledge Realty Trust's performance over the forecast period. These growth catalysts reflect both contractual advantages and market opportunities.

• Contractual rent escalations: ₹580.00 crore in secured rental increases
• Occupancy expansion: Leasing 3.20 million sq. ft of vacant completed space
• Mark-to-market opportunity: 22% potential upside on current rental rates
• New development leasing: 1.20 million sq. ft Bengaluru project completion

Market Dynamics and Sector Outlook

Kotak highlights the robust fundamentals of India's office real estate sector, noting significant expansion over the past 25 years. The office stock has grown 35 times, reaching 887 million sq. ft by March 2025, with projections to exceed 1 billion sq. ft by 2027E. Demand is expected to outpace new supply, creating favorable conditions for existing players like Knowledge Realty Trust.

Global capability centres are anticipated to remain the primary demand driver for Indian office space, supporting sustained occupancy growth and rental escalations across major markets.

Risk Factors and Considerations

Despite the positive outlook, Kotak has identified several risks that could impact Knowledge Realty Trust's performance. The brokerage particularly flags slower-than-expected occupancy improvement as a key concern.

Key downside risks include:

• Decline in occupancy at leased assets
• Non-renewal or termination of existing leases
• Tenant concentration risks across the portfolio
• Geographic dependence on select cities

Kotak views Knowledge Realty Trust as a leveraged opportunity on India's deepening office demand cycle, supported by global capability centre expansion, rental escalations, and new leasing activity, while acknowledging the recovery remains sensitive to occupancy trends.

Market Performance

Shares of Knowledge Realty Trust were trading 0.76% higher at ₹125.27 apiece, outperforming the broader market which saw the BSE Sensex decline 0.14% during the same period.