India’s commercial real estate sector continues to see strong momentum as Knowledge Realty Trust (KRT) announced plans to invest ₹700 crore over the next 3 years to develop 1.4 million sq ft of office space in Bengaluru. The move is part of the company’s broader expansion strategy driven by rising demand from Global Capability Centres (GCCs) and multinational firms.
KRT, a real estate investment trust sponsored by Sattva Group and Blackstone, said the new development has already entered the construction phase. The company’s CEO Shirish Godbole stated that demand for premium office spaces remains strong, especially from foreign companies setting up GCC operations in India.
The company currently manages 29 premium office assets spread across 46.5 million sq ft in 6 cities. Out of this, 37.2 million sq ft is completed, 2.6 million sq ft is under construction, and 6.6 million sq ft is reserved for future development.
According to Godbole, around 1.2 million sq ft of office space is nearing completion, while work on the new 1.4 million sq ft Bengaluru project has recently started. Alongside organic growth, KRT is also exploring acquisitions to expand its portfolio further.
The company highlighted that nearly 25% of its current office portfolio is leased below market rent, offering significant scope for future rental income growth. KRT currently carries a debt of around ₹12,000 crore.
Recently, the company announced a distribution of ₹716.6 crore to unitholders for the quarter ended March. Since its listing in August 2025, cumulative distributions have reached ₹2,101.9 crore, or ₹4.74 per unit.
During the January-March quarter, KRT recorded gross leasing of 1.1 million sq ft, taking total leasing for FY26 to 3.5 million sq ft. Portfolio occupancy reached 92%. Net Operating Income (NOI) rose 14% year-on-year to ₹1,053.3 crore during the quarter, while annual NOI increased 18% to ₹4,048.4 crore.
“We enter FY27 with strong operating momentum, a resilient balance sheet and multiple visible growth levers,” said Godbole.
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