Blackstone sells over 310 mn units in Nexus Select Trust for Rs 4,355 cr

Global investment firm Blackstone on Friday sold 31.55 crore units in its REIT firm 'Nexus Select Trust' for around Rs 4,354.90 crore through a block deal on stock exchanges as part of a strategy to monetise real estate portfolio.

Blackstone currently holds around 43 per cent stake in Nexus Select Trust, which is India's first real estate investment trust (REIT) backed by retail properties.

According to exchange data, Blackstone sold 31.55 crore units in Nexus Select Trust at Rs 138 apiece, taking the total transaction value to Rs 4,354.90 crore.

Domestic mutual funds, including ICICI Prudential Mutual Fund (MF), and HDFC MF picked up units of Nexus Select Trust. Among foreign companies, US-based financial services company Wells Fargo and Morgan Stanley acquired stake in the company while French asset management firm Carmignac bought units of the REIT firm, as per the data on the NSE.

These entities acquired a total of 11.75 crore units or 7.76 per cent stake in Nexus Select Trust.

They purchased these units at an average price of Rs 138 per piece, taking the deal value to Rs 1,622.49 crore, as per the data.

Many existing investors also increased their unit holdings in Nexus Select Trust.

Blackstone has monetised its investment in Nexus Select Trust through this block deal.

Post divestment, Blackstone's stake in Nexus Select Trust will reduce to 21 per cent.

Nexus Select Trust's portfolio comprises 17 shopping malls with a gross leasable area of 9.9 million square feet spread across 14 cities, two complementary hotel assets (354 keys) and three office assets with a gross leasable area of 1.3 million square feet.

Blackstone has sponsored three REITs in India -- Embassy Office Parks REIT, MindspaceREIT and Nexus Select Trust, which got listed last year after raising more than Rs 3,000 crore through public issues.

As per the exchange data on the NSE and BSE, Blackstone through its affiliates, Blackstone Real Estate Partners (BREP) Asia II Indian Holding Co IX (NQ) and BREP Asia SG Red Fort Holding NQ offloaded units of real estate investment trust (REIT) firm Nexus Select Trust via separate bulk deals.

A total of 31.55 crore units or 20.82 per cent stake in Nexus Select Trust was sold by Blackstone through its arms.

BREP Asia II Indian Holding Co IX (NQ) sold 18.89 crore units of Nexus Select Trust on the NSE while BREP Asia SG Red Fort Holding NQ disposed of 11.82 crore units of REIT on the bourse.

In addition, BREP Asia II Indian Holding Co IX (NQ) also offloaded 83.97 lakh units of Nexus Select Trust on the BSE.

The units were disposed of at an average price of Rs 138 per unit, taking the combined transaction value to over Rs 4,354 crore.

Details of the buyers of Nexus Select Trust units could not be ascertained on the BSE.

Nexus Select Trust's units plunged 4.93 per cent to close at Rs 137.05 apiece on the NSE while it ended at Rs 137.88 per piece, down by 4.51 per cent on the BSE.