Blackstone’s Knowledge Realty OFS Subscribed 1.4x on Day 1

Blackstone’s Offer for Sale (OFS) of a 25.03% stake in Knowledge Realty Trust was subscribed 1.4 times on its initial day of bidding. This strong demand originated primarily from non-retail investors for the listed Real Estate Investment Trust (REIT).

The OFS, valued at up to Rs 11,988 crore, represents the largest in India’s private sector. Following the completion of the stake sale, Blackstone is set to retain a 21.5% holding in the REIT.

Key Subscription Metrics

• Subscription Rate: 139.85%
• Bids Received: 93.14 crore units
• Offer Size: 66.60 crore units
• Floor Price: Rs 108 per unit
• Monday’s Trading Price: Rs 110.24

Notable investors participating in the issue included PPFAS Asset Management and 360 ONE Asset Management. The offering was exclusively for non-retail investors on Monday, with the retail portion scheduled to commence on Tuesday.

Knowledge Realty Trust Overview

Knowledge Realty Trust, a joint venture between Blackstone and Sattva Group, debuted on the stock market in August 2025. Its public issue successfully raised Rs 4,800 crore, positioning it as India’s largest REIT by gross asset value and net operating income at the time of its Initial Public Offer (IPO).

• Initial Blackstone Stake: 55%
• Sattva Group Stake: 45%
• Portfolio: 29 commercial real estate properties
• Locations: Six cities
• Leasable Area: 46.5 million sq ft
• Tenants: Over 450

Quarterly Performance Highlights

For the quarter ending June, Knowledge Realty Trust reported a 15% year-on-year increase in both revenue and net operating income (NOI). Revenue reached Rs 1,243.1 crore, while NOI climbed to Rs 1,111.7 crore.

• Distribution Declared: Rs 751.6 crore
• Distribution Per Unit (DPU): Rs 1.70, reflecting a 5% sequential increase
• Portfolio Occupancy: 93%, an improvement of 100 basis points sequentially
• Gross Leasing: 1.4 million sq ft
• Front-office Occupiers: Accounted for over 50% of gross leasing
• Existing Tenants’ Contribution: 58% of new leasing through expansion

India’s REIT market continues to expand, offering investors access to income-generating commercial real estate within a regulated framework. The sector currently features six listed REITs, attracting significant institutional investor interest and serving as a crucial capital source for developers.