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Time of India
a day ago
- Business
- Time of India
India Office REITs outperform Realty Index, attract global investors: Cushman & Wakefield study
Indian office REITs are showing strong growth. They are outperforming the real estate market. Investor interest is increasing. Global Capability Centres are driving leasing demand. REIT-owned properties are capturing a bigger share of the Grade A office market. A new office REIT, Knowledge Realty Trust, is expected to launch soon. India's REIT market is among Asia's fastest growing. Tired of too many ads? Remove Ads Global capability centres power leasing momentum Tired of too many ads? Remove Ads REITs capture bigger share of India's grade A office market New listings on the horizon India among Asia's fastest growing REIT markets India's Office REITs are fast emerging as a resilient wealth-creation avenue, outperforming the broader real estate market and drawing increasing investor to Cushman & Wakefield 's latest Asia REIT Market Insight 2024–25, Indian office REITs recorded over 15% capital appreciation in the past 12 months, surpassing the performance of the BSE Realty Index, which witnessed a correction during the same study highlighted that India and China remain the key growth engines for the Asia REIT market in 2024, even as mature markets like Japan, Singapore, and Hong Kong trend towards stabilization. 'India's REIT market continues to carve a strong trajectory, with exceptional growth seen across the office sector,' said Somy Thomas, Executive Managing Director, Valuations and Co-Head, Capital Markets, India at Cushman & Wakefield.A key driver behind this robust performance has been the surging leasing demand from Global Capability Centres ( GCCs ), which increasingly prefer institutional-grade office spaces offered by REITs. According to Cushman & Wakefield, GCCs accounted for 40%–60% of total leasing demand in REIT assets, compared to their overall average of 28–29% across India's office of June 2025, India's REIT landscape comprises three office REITs and one retail REIT, collectively managing over 105 million sq ft of operational space, with plans to add another 23 million sq ft under development. REIT-owned properties now account for approximately 13% of India's total Grade A office stock, a significant jump driven by demand from multinationals, BFSI firms, and engineering Chen, Director, Investor Client Intelligence & Insights, Asia Pacific at Cushman & Wakefield, noted, 'India's performance emphasizes the growing strength of the country's institutional-grade real estate. These markets continue to create new and exciting opportunities for investors targeting Asia.'The Indian REIT market is set to grow further, with Knowledge Realty Trust, backed by Blackstone and Sattva Developers, expected to launch India's fourth office REIT by the end of 2025. With 48 million sq ft of Grade A office space, it is poised to become one of the largest REITs in India upon mature markets like Japan, Singapore, and Hong Kong are focusing on operational efficiencies amidst global monetary challenges, India stands out among Asia's emerging markets. Alongside China and Thailand, India recorded a 13% growth in its REIT market during 2024, as per Cushman & Wakefield's data. This growth is underpinned by strong economic fundamentals, increasing foreign investor interest, and rising demand for premium office spaces.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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Business Standard
6 days ago
- Business
- Business Standard
Office Reits beat BSE Realty Index amid 'heightened demand': Report
Office real estate investment trust (Reit) stocks did better than the BSE Realty Index in the 12 months up to June 2025, overcoming the underperformance they had clocked for almost two years. All three office Reit stocks delivered more than 15 per cent capital appreciation, according to a report by Cushman & Wakefield. The BSE Index corrected in the same period. Reit stocks were helped by the strength of India's office real estate market, which has seen 'heightened demand' from global capability centres (GCCs), engineering and manufacturing, and financial sector firms. Customers preferring premium-grade assets has benefitted Reits, too, said the report. GCCs accounted for 28-29 per cent of nationwide gross leasing volume on average over the last four quarters up to Q1 2025. Office Reit landlords were able to achieve a much higher share —between 40 per cent to 60 per cent of total leasing demand from GCC firms — rendering institutionally owned assets the preferred choice for many multinational occupiers. There are three office Reits in India — Mindspace Business Parks Reit, Brookfield India Reit, and Embassy Office Parks Reit — and one retail Reit: Nexus Select Trust. This is the lowest number of active Reits among Asian peers, which together have a total of 263 active Reits with a market value of $235.8 billion. Compared to market leaders Japan and Singapore, which together make up $158 billion of market value as of December 2024 — cornering more than 60 per cent of the Asian market — India's share stands at 4.6 per cent with a market value of $11 billion. A fourth office Reit in India is expected to make its listing debut by this year's end, the report said, pointing to Knowledge Realty Trust, which is backed by Blackstone and Sattva Developers. With 48 million square feet (msf) of pan-India grade A office space (37 msf operational and 11 msf under development), Knowledge Realty Trust is expected to become one of the largest real estate investment trusts listed in India. 'India's Reit market continues to carve a strong trajectory, with exceptional growth seen across the office sector. Multinational companies, especially GCCs, have driven record leasing activity, which now accounts for a significant share of the nation's grade A office stock,' said Somy Thomas, executive managing director, valuations and co-head, capital markets, India, at Cushman & Wakefield. 'All three office Reits in India achieved occupancy rates close to 90 per cent at the end of Q1 2025.' FY25 was a strong year for India's office Reits, as they collectively garnered leasing volumes of more than 16 msf, which accounted for close to a fifth of the gross leasing volume (GLV) across the top eight cities in the country. India, along with China and Thailand, is expected to continue to grow, bolstered by strong economic fundamentals and supportive regulatory frameworks, analysts at the firm said, adding that mature markets of Japan, Singapore and Hong Kong are expected to focus on enhancing operational efficiencies while grappling with the challenges posed by global monetary policy shifts. Cushman & Wakefield's report noted that data centre and hospitality Reits are expected to remain highly visible on investors' radar, driven by AI advancements and recovery in the tourism sector, respectively. Additionally, M&A activity is likely to pick up as players seek scale and diversification to better weather market fluctuations.
Time of India
19-06-2025
- Business
- Time of India
Are the mainboard IPOs out of steam? Pranav Haldea answers
Live Events You Might Also Like: Influx Healthtech IPO opens today: Check key details before subscribing You Might Also Like: Blackstone-backed Knowledge Realty Trust plans Rs 4,800 crore IPO (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel , MD,, says despite a quiet period in March with no mainboard IPOs and smaller deals in April and May, it's premature to declare that mainboard IPO is out of steam. A significant pipeline exists, with numerous companies awaiting SEBI approval to raise substantial funds. While recent responses have been muted, larger deals are anticipated, contingent on geopolitical it is too early to say that. The steam, in fact, has barely started for us to call it to be over. In March, after two years, we did not see a single mainboard IPO and even in April and May, we have seen very small deals. You have not really seen a big-ticket IPO coming to the market. As you rightly said, the pipeline is are about 74 odd companies looking to raise Rs 1.5 lakh crore, holding Sebi approval and another 70 odd companies looking to raise Rs 1 lakh crore waiting for sebi approval. Some of the big deals like HDB and a couple of others are likely to hit the market soon. So, it is still too early to say the steam is gone. Yes, the response to some of the deals in May has been slightly muted. The listing has also not been great, but we need to give this some more we know, the primary market takes its cue from the secondary market and, of course, there are concerns there, the most major one right now is on geopolitical side with what is happening with Israel and Iran and if that does not throw a spanner in the work, I would expect some larger deals to get launched.I would not comment on specific IPOs or specific companies in the unlisted space, but I think there is a mixed bag. There have been some multi-baggers in the past few years where investors who bought in the unlisted space made good returns. At the same time, in '23-24, there were several deals, wherein investors are still sitting on investors need to tread with caution and it is not necessary that you will make a significant gain once the company space has seen a lot of action in the last year, year-and-a-half. I was just looking at the data and the average number of retail applications in the SME IPO space was just 297 in CY2020. That means that per SME IPO, only 297 retail investors were applying. This figure has gone up to 1.87 lakh in CY2024, which shows the huge increase in retail interest which is coming to this a word of caution – these are very small companies. Their business models are not completely tested. As far as liquidity and trading is concerned, it is very shallow. There is a lot of volatility in these stocks as well. So, yes, while some of them do end up becoming multi-baggers, there are several IPOs where investors are sitting on significant losses as well. So, investors need to tread with extreme caution in this advice to a newbie investor would be first to go through the mutual fund route if he is entering the market for the first time. If one is slightly more adventurous and is willing to take a bit more risk, then look at the 2500 already listed companies where there have been significant disclosures, there is a track record which you can you have an appetite for more risk, you can look at the IPO market and even within the IPO market, it is very important to introspect and figure out whether you are coming in for a listing gain or coming in for the long. If you are coming in for the listing gain, then you may apply to all IPOs. In bullish markets, typically all IPOs give a good listing pop and then you should exit on the listing day because you really came in only as a listing pop the other hand, of course, if you are coming in for the long haul, then you need to do the hard work. You need to study the offer document, understand the company, the promoters, the governance, its business model, its financials, and then take a call to invest.A lot of these MNCs which are looking at listings have essentially become like Indian companies. They have been in the ecosystem for a long time. These are consumer companies, extremely familiar to the Indian space. I would imagine from a governance standpoint as well, there would not really be much of a challenge. Given the demographics of India, a lot of these companies are poised to grow exponentially in the years to with every IPO, for an investor there are two things to look at: One, the kind of company which is coming in and Two, the valuation. So, a very good company could be coming in with an IPO, but the valuation may be stretched. Again, that makes for a poor investment. We need to look up IPOs where the company is good and the valuation is also far as the valuations are concerned, my view has always been that valuation is an art, and not a science. Apart from the closing price on the day of listing, when can one really make an assessment and say that the IPO was overpriced or underpriced or fairly priced? The reason is very simple that on the day of listing the share becomes available for trading for a wider set of investors, domestic, foreign, retail, institutional, long, short, there are no restrictions which are there at the time of IPO. Hence we can say that on the day of listing, some kind of price discovery happens and where the share ends at the end of the day can give us a sense of how the IPO was beyond that, it becomes like any other listed company whose share price will go up and down on the basis of the company's own performance, how the sector is doing, how the broader market is doing, and how the broader economy is doing. If you are sitting in 2025 and looking at the 2022 IPOs and doing an analysis of how many of them are above issue price, how many are below issue price, it is an exercise in futility and the data also shows this some of them have performed very well since 2022, while some have failed to even reach the issue it is a very selective process and with every IPO. My advice would only be to look at each of these companies, study the company, and also look at the valuation. We cannot pass a generic statement there. There are some very interesting business models out there. The only drawback as far as retail investors are concerned is that there may not necessarily be a peer group company with which they can compare the valuation, in which case, investors should follow the cues of QIPs.
Hindustan Times
18-06-2025
- Business
- Hindustan Times
Sattva Group, Blackstone sponsored REIT raises ₹1,400 cr in pre-IPO round
New Delhi, Jun 18 (PTI) Knowledge Realty Trust, sponsored by real estate company Sattva Group and Blackstone, has raised ₹1,400 crore from investors ahead of its maiden REIT public issue. In early March, Knowledge Realty Trust (KRT) filed the Draft Red Herring Prospectus (DRHP) with SEBI to launch an Initial Public Offering (IPO) for raising ₹6,200 crore and list the REIT on stock exchanges. This is part of its strategy to monetise its 30 prime office assets across major cities. According to sources, the KRT has raised ₹1,400 crore in a pre-IPO round from family offices and high net worth individuals. KRT will be the largest REIT in India in terms of Net Operating Income (NOI) and Gross Asset Value, which is estimated at around ₹60,000 crore. At present, there are four listed REITs in India -- Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Apart from Nexus Select Trust, the other three REITs are backed by rent-yielding office assets. Nexus owns a large portfolio of retail real estate spaces. This will be the fifth public listing of Blackstone India Real Estate business, including three listed REITs and one of Ventive Hospitality. KRT's total portfolio is 48 million sq ft (37 million square feet completed) across 30 Grade A office assets across six major cities, making it India's most geographically diverse Office REIT. Of the total portfolio, 90 per cent is leased with marquee tenants - 76 per cent with MNCs and 45 per cent with GCCs (Global Capability Centres). Sattva Developers has so far constructed 74 million square feet across seven Indian cities in commercial, residential, co-living, co-working, hospitality, and data centre sectors. An additional 75 million square feet is in planning and implementation. Blackstone, one of the leading global investment firms, has a huge exposure in the Indian real estate market. The two sponsors have decided to adopt brand brand-neutral strategy to grow the KRT portfolio inorganically through third-party acquisitions. The existing four REITs have a combined portfolio of over 126 million square feet of Grade A office and retail space across the country. Since their inception, these REITs have collectively distributed over ₹21,000 crore to unitholders. According to Vestian's latest report, nearly 60 per cent of pan-India office stock is REIT-worthy across the top seven cities.
Mint
18-06-2025
- Business
- Mint
Sattva Group, Blackstone-backed Knowledge Realty Trust REIT raises ₹1,400 cr in pre-IPO round
New Delhi, Jun 18 (PTI) Knowledge Realty Trust, sponsored by real estate company Sattva Group and Blackstone, has raised ₹ 1,400 crore from investors ahead of its maiden REIT public issue. In early March, Knowledge Realty Trust (KRT) filed the Draft Red Herring Prospectus (DRHP) with SEBI to launch an Initial Public Offering (IPO) for raising ₹ 6,200 crore and list the REIT on stock exchanges. This is part of its strategy to monetise its 30 prime office assets across major cities. According to sources, the KRT has raised ₹ 1,400 crore in a pre-IPO round from family offices and high net worth individuals. KRT will be the largest REIT in India in terms of Net Operating Income (NOI) and Gross Asset Value, which is estimated at around ₹ 60,000 crore. At present, there are four listed REITs in India -- Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Apart from Nexus Select Trust, the other three REITs are backed by rent-yielding office assets. Nexus owns a large portfolio of retail real estate spaces. This will be the fifth public listing of Blackstone India Real Estate business, including three listed REITs and one of Ventive Hospitality. KRT's total portfolio is 48 million sq ft (37 million square feet completed) across 30 Grade A office assets across six major cities, making it India's most geographically diverse Office REIT. Of the total portfolio, 90 per cent is leased with marquee tenants - 76 per cent with MNCs and 45 per cent with GCCs (Global Capability Centres). Sattva Developers has so far constructed 74 million square feet across seven Indian cities in commercial, residential, co-living, co-working, hospitality, and data centre sectors. An additional 75 million square feet is in planning and implementation. Blackstone, one of the leading global investment firms, has a huge exposure in the Indian real estate market. The two sponsors have decided to adopt brand brand-neutral strategy to grow the KRT portfolio inorganically through third-party acquisitions. The existing four REITs have a combined portfolio of over 126 million square feet of Grade A office and retail space across the country. Since their inception, these REITs have collectively distributed over ₹ 21,000 crore to unitholders. According to Vestian's latest report, nearly 60 per cent of pan-India office stock is REIT-worthy across the top seven cities.
