Knowledge Realty Trust (KRT) plans to invest Rs 700 crore over the next three years to create 1.4 million square feet of office space in Bengaluru as part of its expansion strategy, according to a senior company official. KRT is a real estate investment trust (REIT) backed by the Sattva Group and the investment firm Blackstone.
In a discussion , KRT Chief Executive Officer (CEO) Shirish Godbole indicated that the company is seeking to acquire prime office properties to facilitate organic business growth. He emphasized that the company had a strong performance in the previous fiscal year and anticipates maintaining this growth trajectory in 2026-27 across all key metrics, including Net Operating Income (NOI) and distributions to unitholders.
Godbole pointed out that the demand for office space remains robust, largely fueled by foreign firms aiming to establish Global Capability Centres (GCCs). He affirmed that the company’s portfolio is resilient to artificial intelligence (AI) trends, with a significant portion of its workspaces occupied by GCCs and front office operations.
KRT’s overall portfolio consists of 29 premium office assets, encompassing a total area of 46.5 million square feet, of which 37.2 million square feet has been completed, 2.6 million square feet is currently under construction, and 6.6 million square feet is designated for future development across six cities. When asked about ongoing construction projects, Godbole mentioned that 1.2 million square feet of office space is nearing completion, while construction on the 1.4 million square feet area has just commenced.
KRT is set to invest approximately Rs 700 crore over the next three years for this new 1.4 million square feet office space in Bengaluru. Additionally, Godbole stated, “We are exploring acquisitions for inorganic growth. We are actively seeking opportunities in the market.” He also noted that about 25 percent of its current portfolio is leased at rates below the market average, presenting significant potential for growth in total rental income.
Currently, KRT carries a debt of around Rs 12,000 crore. Recently, KRT declared a distribution of Rs 716.6 crore to unitholders for the quarter ending in March.
The total distributions since the listing in August 2025 reached Rs 2,101.9 crore, equating to Rs 4.74 per unit. In the fourth quarter of 2025-26, the company recorded gross leasing of 1.1 million square feet, bringing the cumulative leasing for FY26 to 3.5 million square feet and the portfolio occupancy to 92 percent. The Net Operating Income (NOI) increased by 14 percent to Rs 1,053.3 crore during the January-March period of the previous fiscal year, up from Rs 924.8 crore in the same period last year. For the fiscal year 2025-26, the company’s NOI rose by 18 percent year-on-year to Rs 4,048.4 crore.
Godbole stated, “We enter FY27 with robust operating momentum, a strong balance sheet, and several visible growth drivers.” He indicated that the company anticipates the leasing figures for 2026-27 to remain at a comparable level, approximately 3.5 million square feet, which includes both new leases and renewals. Eliminating any concerns regarding the demand for its office spaces, Godbole remarked, “We possess an AI-resilient portfolio supported by three key factors — 45 percent of gross rentals from GCC occupiers; minimal exposure to the traditional IT services sector; and 31 percent of portfolio value in front office assets.”
