Blackstone-backed Nexus Select Trust eyes three malls in eastern India

Blackstone-backed mall operator eyes expansion in Kolkata, Patna, Ranchi and Guwahati as it moves to double its portfolio to 30 malls by 2030

This report has been updated.    Blackstone-backed Nexus Select Trust is at an advanced stage of due diligence for the acquisition of three malls in eastern India as it looks to expand its footprint in the region.

 

Jayen Naik, president – operations, Nexus Select Malls, said that Nexus has a strong presence in the North, West and South. “You will see the Nexus footprint also spreading in the East. We are in the process of doing due diligence for three properties.”

 

Currently, Nexus has one mall in Bhubaneswar. In June, Blackstone acquired South City Mall in Kolkata for a transaction value of ₹3,250 crore – the city’s largest real estate deal.

 

Naik explained that South City, because of the structure of the company, could not be part of Nexus Real Estate Investment Trust (Reit) and hence was acquired by Blackstone.

 

The South City Mall was part of a combined transaction – Blackstone had also acquired unsold inventories in Sri Lankan residential project Altair from the South City Group, taking the total deal size to ₹3,400 crore.

 

Post-acquisition, the South City Mall is now entering a new chapter. Naik said it was one of the top five malls in the country. “We are now taking it to the next level,” he added.

 

The major change would be in the look and feel of the mall. New brands, and investment in infrastructure and technology would also be part of it.

 

Nexus has set an aggressive target for expansion — currently it has a portfolio of 19 malls across 15 cities. The plan is to double the portfolio to over 30 malls by 2030.

 

On Friday, Nexus Select Trust said it has strengthened its presence in the Chandigarh Tricity market by acquiring 60,000 square feet (sq ft) of retail space within the Nexus Elante Complex at a total enterprise value of ₹253.7 crore. The transaction comprises a purchase consideration of ₹230.7 crore, representing an 8 per cent discount to the independent valuation of the asset, stamp duty, closing costs, and planned capital expenditure.

 

The acquisition has been financed through a combination of issuance of ₹202 crore commercial paper (at a 6.2 per cent coupon rate) and opening cash balance.

 

After 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.