Knowledge Realty Trust to Invest ₹700 Crore in 1.4 Million Sq Ft Office Development in Bengaluru

Realty firm Knowledge Realty Trust (KRT) is poised to strategically expand its footprint in Bengaluru by investing ₹700 crore over the next three years to develop an additional 1.4 lakh square feet of office space. This initiative aligns with the company’s broader growth strategy aimed at bolstering its position in the competitive real estate market. As a real estate investment trust (REIT) sponsored by Sattva Group and Blackstone, KRT’s expansion signals confidence in the Bengaluru market, which is witnessing sustained demand for office spaces, particularly from foreign firms establishing Global Capability Centres (GCCs). CEO Shirish Godbole emphasized that KRT’s focus lies not only on organic growth through new developments but also on acquiring prime office assets to enhance its portfolio.

KRT’s performance metrics indicate a strong trajectory, with a 14% increase in Net Operating Income (NOI) for the January-March period of the last fiscal year, totaling ₹1,053.3 crore. The company has maintained a healthy portfolio occupancy rate of 92%, supported by significant gross leasing activity that reached 1.1 million square feet in the fourth quarter of fiscal year 2025-26. Godbole’s assertion of entering the 2026-27 fiscal year with robust operating momentum, alongside a resilient balance sheet and several clear growth opportunities, positions KRT favorably in an evolving market that demands adaptability and innovation.

Furthermore, KRT’s current portfolio consists of 29 premium office assets covering a total area of 46.5 million square feet, of which a significant portion remains available for future development. Notably, approximately 25% of the current portfolio is rented below market rates, representing substantial potential for revenue growth. With KRT’s ongoing focus on acquisitions for inorganic growth, coupled with a strategic approach to navigating the evolving landscape of commercial real estate, the firm is well-positioned to capitalize on market opportunities and enhance shareholder value. The recent distribution of ₹716.6 crore to unitholders for the last quarter underscores the company’s commitment to delivering returns amidst its expansion efforts.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)