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Two Indian real estate investment trusts (REITs) are preparing to enter the bond market this month, signaling a strong end to a record year for debt issuances in the sector. Knowledge Realty Trust aims to raise INR 16 billion through bonds maturing in four years, while Embassy Office Parks REIT is expected to raise INR 5 billion or more with five-year or longer notes including put and call options. So far in 2025, REITs have raised INR 112.5 billion, nearly double last year's total.
Two Indian real estate investment trusts are set to tap the bond market in the coming days as the year approaches its close, according to sources familiar with the matter. The move reflects a surge in debt issuances by operators of income-generating properties across the country. Advertisement
Bonds are preferred by REITs because they come with fewer restrictions than bank loans, allowing the funds to be used flexibly across multiple properties, according to merchant bankers. Knowledge Realty Trust is expected to raise INR 16 billion through bonds that will mature within four years. Meanwhile, Embassy Office Parks REIT plans to issue debt notes with a maturity of five years or longer, featuring put and call options, said the sources, who requested anonymity due to the private nature of the discussions.
If these transactions are completed, December would mark the first time all five of India's real estate investment trusts have issued bonds. This year, REIT bond issuances have already hit record levels, raising a total of INR 112.5 billion, nearly double the INR 59 billion raised in 2024, according to Prime Database.
Earlier this week, Brookfield India Real Estate Trust conducted its first-ever debt issuance, raising INR 20 billion with a five-year maturity. The growing trend highlights the increasing reliance of Indian REITs on the debt market to fund their property portfolios and expand operations. Both Knowledge Realty Trust and Embassy Office Parks REIT did not respond to requests for comment.
Source Reuters
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