Blackstone Inc. is reportedly preparing to sell a stake in Knowledge Realty Trust, India's largest office REIT, that could be valued at up to $1.25 billion. This potential transaction would involve a block deal and would represent a move by Blackstone to monetize its investment in the Indian real estate market.
Knowledge Realty Trust, which is co-sponsored by Blackstone and Sattva Developers Pvt., launched its initial public offering (IPO) in August. The IPO raised INR 4,800 crore (approximately $558 million), despite an initial target of INR 6,200 crore. The offering was significantly oversubscribed, by 13 times, highlighting strong investor confidence in India's commercial real estate sector.
Blackstone has been a significant player in the Indian office market, holding a 55% stake in Knowledge Realty prior to the IPO. Following the listing, Blackstone's stake decreased to 45%, while Sattva's fell to 35%. The trust’s portfolio includes 30 office buildings across six Indian cities, with a gross asset value of INR 619 billion, making it the largest office REIT in India by this metric and the second largest in Asia.
The potential sale by Blackstone comes after the REIT's units began trading on August 18. This move could signal Blackstone's strategic decision to realize gains from its early and substantial investment in the Indian office sector, a market Asheesh Mohta, senior managing director in Blackstone Real Estate, previously stated they were early believers in, starting in 2011.
Analysts have shown a positive outlook on Knowledge Realty Trust, with a mean consensus of "BUY" from nine analysts and an average target price of INR 128.75, representing an 11% upside from its last close price of INR 115.99. The trust reported a profit of INR 222.5 crore for fiscal year 2025, a 34.5% decline due to an exceptional loss of INR 350.2 crore, though revenue increased by 15.8% to INR 3,930.1 crore.
