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Realty firm Knowledge Realty Trust (KRT), sponsored by Sattva Group and Blackstone, will invest INR 700 crore over the next three years to develop 1.4 million sq ft of office space in Bengaluru. The REIT, which holds a 46.5 million sq ft portfolio across six cities, is also pursuing acquisitions for inorganic expansion. The company reported strong leasing momentum, 92 per cent occupancy, and rising net operating income, driven largely by demand from global capability centres.
Knowledge Realty Trust (KRT), a real estate investment trust backed by Sattva Group and Blackstone, will invest INR 700 crore over the next three years to develop 1.4 million sq ft of office space in Bengaluru as part of its expansion strategy, according to a senior company official. Advertisement
The REIT, which operates a portfolio of premium office assets across multiple Indian cities, is also actively exploring acquisitions of prime properties to support inorganic growth. The company’s Chief Executive Officer Shirish Godbole stated that it remains present in the market for potential deals, with a focus on strengthening its asset base in high-demand office micro-markets.
KRT currently manages a portfolio of 29 office assets spanning 46.5 million sq ft across six cities. Of this, 37.2 million sq ft is completed, 2.6 million sq ft is under construction, and 6.6 million sq ft is earmarked for future development. Within the ongoing construction pipeline, 1.2 million sq ft is nearing completion, while the 1.4 million sq ft Bengaluru project has recently commenced and will be developed with the proposed investment over the next three years.
The company has indicated that demand for office space continues to remain strong, primarily driven by global capability centres (GCCs) being established by multinational firms in India. According to the management, this segment forms a significant share of leasing activity and continues to support occupancy levels across its portfolio.
KRT reported that its assets are largely insulated from volatility in traditional IT services demand, with a portfolio structure that is heavily tilted towards GCC occupiers and front office assets. Around 45 per cent of gross rentals are derived from GCC tenants, while exposure to conventional IT services remains minimal.
The REIT’s portfolio occupancy currently stands at 92 per cent, supported by gross leasing of 1.1 million sq ft in the fourth quarter of 2025–26. Total leasing for the fiscal year reached 3.5 million sq ft, including both fresh leasing and renewals.
Financially, the company recorded a 14 per cent year-on-year increase in net operating income (NOI) to INR 1,053.3 crore in the January–March quarter. For the full 2025–26 fiscal year, NOI rose 18 per cent to INR 4,048.4 crore.
KRT also announced cumulative distributions of INR 2,101.9 crore since its listing in August 2025, including INR 716.6 crore for the quarter ended March. The REIT carries a debt of approximately INR 12,000 crore and continues to focus on maintaining growth momentum into 2026–27, supported by leasing visibility and a stable balance sheet.
Source PTI
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