Knowledge Realty Trust (KRT), a real estate investment trust sponsored by Sattva Group and Blackstone, is set to invest Rs 700 crore in developing 1.4 million square feet of office space in Bengaluru. This strategic move aims to bolster its portfolio and capitalize on the strong demand for office spaces driven by global companies establishing Global Capability Centres (GCCs).
KRT's CEO, Shirish Godbole, highlighted the company's robust performance in the last fiscal year, with a 14% rise in Net Operating Income (NOI) to Rs 1,053.3 crore during the January-March period. The fiscal year 2025-26 saw an 18% year-on-year increase in NOI, reaching Rs 4,048.4 crore. The company also achieved gross leasing of 1.1 million square feet in the fourth quarter, bringing the fiscal year's total to 3.5 million square feet and portfolio occupancy to 92%.
The company's portfolio comprises 29 premium office assets totaling 46.5 million square feet across six cities, with 37.2 million square feet completed, 2.6 million square feet under construction, and 6.6 million square feet earmarked for future development. Godbole noted that 1.2 million square feet of office space is nearing completion, while construction on the new 1.4 million square feet project has just begun.
“We enter FY27 with strong operating momentum, a resilient balance sheet and multiple visible growth levers.”
Shirish Godbole, CEO, KRT
KRT is also exploring inorganic growth opportunities through acquisitions, with 25% of its current portfolio leased below market rent, offering significant potential for increased rental income. The company has a debt of approximately Rs 12,000 crore and recently announced a distribution of Rs 716.6 crore to unitholders for the quarter ended March, bringing cumulative distributions since its August 2025 listing to Rs 2,101.9 crore.
Godbole emphasized the resilience of KRT's portfolio, which is largely occupied by GCCs and front office spaces, making it AI-resilient. He stated that the company expects to maintain similar leasing levels in 2026-27, around 3.5 million square feet, including both new leases and renewals.
“We are looking for acquisitions for inorganic growth. We are in the market.”
Shirish Godbole, CEO, KRT
Background
KRT's strategic expansion in Bengaluru is part of a broader trend of real estate investment trusts capitalizing on the growing demand for office spaces in India. The focus on GCCs reflects the increasing interest of foreign companies in establishing operations in the country, driving demand for premium office spaces.
Looking ahead, KRT's continued investment in office space development and strategic acquisitions are expected to enhance its market position. Stakeholders will be keenly watching the company's leasing activities and financial performance in the coming fiscal year.
