Knowledge Realty Trust Secures INR 1,600 Crore Through Non-Convertible Debentures

Knowledge Realty Trust (KRT) has successfully raised INR 1,600 crore through the issuance of Non-Convertible Debentures (NCDs), marking a significant move in the real estate investment sector. The Board of Directors of Knowledge Realty Office Management Services Private Limited, the manager of KRT, approved this strategic financial decision on September 26, 2025.

Key Details of the NCD Issuance

Issue Size: 1,60,000 NCDs with a face value of INR 1,00,000 each
Total Amount Raised: INR 1,600 crore
Coupon Rate: 7.20% per annum
Tenure: 3 years, maturing on September 26, 2028
Listing: To be listed on BSE Limited

Security and Guarantees

The NCDs are backed by robust security measures, including:

First ranking pari passu charge by way of hypothecation over identified bank accounts and receivables of Devbhumi Realtors Private Limited (DRPL).
First ranking pari passu charge by way of mortgage over DRPL's identified immovable properties in Hyderabad.
Corporate guarantee to be issued by DRPL.

Investor Participation

The private placement saw participation from several prominent institutional investors. Here's a breakdown of the major allocations:

Investor	Allocation (INR Crore)	No. of NCDs
Barclays Merchant Bank Singapore Limited	170.00	17,000
Aditya Birla Sun Life Floating Rate Fund	300.00	30,000
Kotak Mahindra Bond Short Term Plan	300.00	30,000
Kotak Corporate Bond Fund	300.00	30,000
ICICI Prudential Corporate Bond Fund	90.00	9,000
Aditya Birla Sun Life Low Duration Fund	153.00	15,300
Aditya Birla Sun Life Short Term Fund	120.00	12,000

Other investors include various funds from Aditya Birla Sun Life and ICICI Prudential, demonstrating strong institutional interest in KRT's debt offering.

Market Impact and Future Outlook

This successful NCD issuance highlights the trust that institutional investors place in Knowledge Realty Trust's financial stability and growth prospects. The funds raised are likely to be utilized for expanding KRT's real estate portfolio and strengthening its market position.

In a related development, KRT has announced the closure of its trading window for designated persons and their immediate relatives, effective from September 26, 2025, until 48 hours after the announcement of the financial results for the quarter ending September 30, 2025. This move ensures compliance with SEBI regulations and maintains transparency in securities trading.

As Knowledge Realty Trust continues to make strategic financial moves, market observers will be keenly watching how these funds will be deployed to drive growth in the competitive real estate investment landscape.

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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:

Successful IPO: Completed a substantial Initial Public Offering (IPO) raising ₹48 billion.
Extensive Portfolio: Holds office and business park assets across six Indian cities.
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:

Metric	Value
Current AUM	~$100 billion
Projected AUM	$200 billion

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.