Blackstone REIT Share Sale
Blackstone Plans Up to 25% Stake Sale in Knowledge Realty Trust
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Key Points
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The Greenshoe option could add up to ₹3,996 crore to the OFS, taking the total potential sale to ₹11,988 crore if fully exercised.
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Knowledge Realty Trust's office portfolio spans about 46.4 million square feet across six major Indian cities, underscoring its scale.
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The REIT’s performance is closely tied to IT and Global Capability Centres tenants, with leasing momentum strong—CEO Shirish Godbole said leasing this year could exceed last year’s 3.5 million square feet, and 1.4 million square feet has already been leased this year.
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This OFS is a secondary sale by Blackstone-affiliated entities rather than a fresh capital raise for Knowledge Realty Trust; proceeds from the sale go to the selling unitholders.
Blackstone is selling up to 25.03% of Knowledge Realty Trust, India's largest office REIT, in a deal valued at ₹11,988 crore ($1.25 billion). Reuters reports the base offer covers 16.69% with an oversubscription option for an additional 8.34% at a floor price of ₹108 per unit. The sale moves the Blackstone-backed firm closer to SEBI's minimum public unitholding requirement while cutting Blackstone's stake from 46.51%.
Knowledge Realty Trust owns 29 office assets across six Indian cities valued at roughly ₹67,400 crore. Since listing in August 2025, the REIT has climbed about 10%, with the stock recently trading near ₹113. The floor price sits below current market levels, setting the stage for market-driven pricing in the offering.
A $1.25 Billion Stake Sale Driven by Regulation
Bloomberg Law reports Blackstone's sale represents the firm's largest such transaction this year. The deal involves up to 11.1 million units across a base offer and optional greenshoe provision. Whales Book notes the sale primarily aims to meet SEBI's minimum public unitholding rules rather than raise fresh capital for the REIT itself—proceeds go to selling unitholders, not the company.
Office Portfolio Spanning 46 Million Square Feet
Knowledge Realty Trust operates roughly 46.4 million square feet of premium office space across India's six largest cities. The REIT's tenants are primarily IT firms and Global Capability Centers—sectors driving India's office leasing boom. Reuters reports the portfolio's gross asset value stands at approximately ₹67,400 crore, anchoring its position as India's leading office REIT.
Strong Leasing Momentum Outpaces Last Year
Knowledge Realty Trust's leasing activity is accelerating. CEO Shirish Godbole signaled that 2025 leasing could surpass last year's 3.5 million square feet—with 1.4 million square feet already leased midway through the year. This pace underscores robust tenant demand in India's office sector as multinationals expand their tech footprint.
Market Reaction Will Shape Near-Term Price Action
The floor price of ₹108 per unit sits below the current market trading range of ₹113 to ₹113.26. Investor appetite for the offering will determine whether pricing stays near the floor or trades higher. The successful completion of this sale would leave Blackstone with roughly 21.5% of Knowledge Realty Trust, marking a meaningful reduction in the sponsor's control stake.
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