Blackstone-backed Nexus Select Trust bullish on consumption growth

Nexus Select Trust targets 13% annual portfolio growth through mall acquisitions and rising consumption, with record festive sales and strong demand across jewellery, fashion, and electronics

Blackstone-backed Nexus Select Trust, bullish on consumption growth across its malls, is eyeing a double-digit asset compound annual growth rate (CAGR) for asset value in its portfolio that’s currently worth ₹29,000 crore, amid its strong mall assets acquisition pipeline, a senior executive said.

 

Jayen Naik, president, operations, Nexus Select Malls, said, “We have always been bullish about consumption. India has a vast young population that is skilling up and being employed more. The aspirations are growing. The awareness of international brands now is much more than it used to be in the past. The youngsters want to enjoy life in terms of spending. In terms of consumption in India, I don’t think we should be very much under pressure.”

 

Naik further said that the retail real estate investment trust (Reit) witnessed a record festival footfall this year boosted by income tax rebate announced in the Budget 2025 earlier this year, GST reforms, and the overall sentiment being “a little more positive”.

 

“In Q2FY26, we recorded almost 16 per cent growth in consumption over Q2FY25. 13 of our 19 malls recorded their highest ever monthly sales in October,” Naik added.

 

The executive is expecting an average growth of 8 per cent in consumption benefiting its income, 10 per cent of which is linked to consumption, a variable component and 90 per cent to minimum guaranteed rentals.

 

According to Naik, Nexus’ recent tenant sales growth was driven by the segments including Jewellery, despite high gold prices, beauty, athleisure wear, and electronics.

 

“The best part is that in the last quarter and even in October, we saw that there is a resurgence in apparel or the fashion demand. We are seeing almost a high single-digit growth in fashion and this is after a long time maybe because of the GST recalibration or more enthusiasm amongst people,” he added.

 

Nexus Select Trust, India’s first listed Reit, currently has 19 grade-A malls in its portfolio. It has an acquisition pipeline of 10 assets, out of which three assets are currently under due diligence. According to Naik, Nexus’ asset value growth will be a combination of 5-6 per cent organic growth and the balance through acquisitions.

 

Naik said that the majority of the planned acquisitions will be funded through debt, a couple through an equity raise, and one

 

by swapping Reit units. The Reit has USD 1 billion of debt headroom with its current loan-to-value (LTV) ratio at around 18 per cent.

 

“If we acquire all 10 assets, the ratio may increase to 28-30 per cent. We are fairly comfortable with that range,” Naik added.

 

After said acquisitions, the Reit’s portfolio will increase from 11 million square feet (msf) to 18-20 msf. The timeline target for the acquisitions has been set for FY30 while the transaction cap rate will hover at 9 or 10.

 

Further, on the back of consumption growth, Nexus has given a 10 per cent growth guidance for distribution in FY26, to ₹9.1-9.2 per unit. The Reit has guided its net operating income (NOI) in FY26 to grow by 15 per cent. The NOI stood at ₹1,711 crore in FY25.