 "Nexus Select Trust buys 60,000 sq ft at Elante Chandigarh for ₹253.7 crore")
Nexus Select Trust has strengthened its presence in the Chandigarh Tricity market as the real estate investment trust (Reit) has acquired 60,000 square feet of retail space within the Nexus Elante Complex at a total enterprise value of Rs 253.7 crore.
The transaction comprises a purchase consideration of Rs 230.7 crore, representing an 8 per cent discount to the independent valuation of the asset. The remaining value covers stamp duty, closing costs and planned capital expenditure.
The acquisition has been financed through a combination of issuance of Rs 202 crore commercial paper at a 6.2 per cent coupon rate and the balance through the opening cash balance. Post this acquisition, the Reit’s loan-to-value (LTV) will continue to remain at 18 per cent, preserving the $1-billion debt headroom for future growth opportunities.
According to Nexus, Nexus Elante is a high-quality, Grade A urban consumption centre spanning approximately 1.3 million square feet, strategically located in the city centre of Chandigarh, the largest consumption hub across the neighbouring North Indian states of Jammu & Kashmir, Himachal Pradesh and Punjab.
The acquired space is located across the ground and first floors of Nexus Elante. Strong trading density and a rental compound annual growth rate (CAGR) of 9 per cent and 7 per cent over the past seven years for the acquired area underscore the value potential uplift from the expansion area. The in-place rental at Elante Mall (ground and first floor) for similar-sized stores is Rs 310 per square foot per month, the Reit noted.
According to the Reit, Nexus Elante’s ground and first floors have operated at nearly full occupancy for the past five years, anchored by marquee brands such as Uniqlo, Zara, Onitsuka Tiger and Armani Exchange, and supported by a waitlist of over 30 prospective tenants.
“This expansion opens the door for high-value categories — including luxury fashion, premium food and beverage, and high-end electronics — further strengthening the asset’s destination appeal and enhancing its long-term growth potential. With limited comparable large-format malls in the Chandigarh Tricity, the proposed retail addition strengthens the Nexus Elante market leadership and expands its dominance, particularly in the underserved premium and luxury retail segment,” the Reit added.