Blackstone Group LP, the world\u2019s largest alternative asset manager, has picked banks for India\u2019s first real estate investment trust listing, people with knowledge of the matter said. The U.S. company and local partner Embassy Group selected firms including Bank of America Corp., Morgan Stanley, Kotak Mahindra Bank Ltd. and JPMorgan Chase & Co., said the people. The REIT listing would raise about $1 billion, the people said, asking not to be identified because the information is private. Axis Bank Ltd., Deutsche Bank AG, HSBC Holdings Plc and JM Financial Ltd. have also been picked for the transaction, the people said. A representative for Blackstone declined to comment. A successful deal could encourage new offerings from India\u2019s cash-starved property firms, which are still recovering from sweeping policy changes and struggling to access liquidity. The Blackstone REIT, which comprises properties that count Microsoft Corp. and Rolls-Royce Holdings Plc as tenants, would also be a crucial test after much-hyped infrastructure trusts failed to gain traction in the Indian market. \u201cA good debut for the Blackstone-Embassy issue could quicken potential offerings by the likes of Xander group, Brookfield, CPPIB and IIFL Holdings who are holding high-quality realty assets,\u201d said Amit Goenka, Mumbai-based managing director of Nisus Finance Services Ltd. \u201cEven if only one-fourth of the high-grade, yield-generating commercial properties are moved into trusts, we will have a $50 billion REITs market in India in a few years.\u201d Goenka was referring to the Xander Group Inc., Brookfield Asset Management Inc., Canada Pension Plan Investment Board and IIFL Holdings Ltd. Blackstone, the largest owner of office space in the county, will look to file the prospectus with the capital market regulator in August, one of the people said. All the arrangers declined to comment. The REIT will include properties from the Embassy Group joint venture as well as from Blackstone\u2019s own portfolio, the people said. Blackstone\u2019s real-estate unit has committed about $5.2 billion across 30 investments in India, they said.