Nexus Select Trust eyes two eastern India mall deals in 60-90 days

The Blackstone-backed Reit plans two to three acquisitions annually and aims to add Rs 125-150 crore of stabilised net operating income through inorganic growth

Blackstone-backed real estate investment trust (Reit) Nexus Select Trust expects to sign definitive agreements for two mall acquisitions in eastern India over the next 60-90 days as it looks to expand its portfolio through inorganic growth while continuing to target two to three acquisitions annually.

 

The two assets are currently under due diligence, Pratik Dantara, chief investor relations officer and head of strategy at Nexus Select Trust, told Business Standard.

 

“Our objective is to complete two to three acquisitions every year and add around ₹125-150 crore of stabilised annual net operating income (NOI) through these acquisitions,” Dantara said.

   

While declining to disclose the value or expected NOI contribution of the two proposed acquisitions because of confidentiality agreements, he said the trust continued to maintain an acquisition pipeline of eight assets.

 

Nexus aims to double its 10.7 million square feet portfolio, comprising 19 consumption centres, by 2030. In April, Nexus announced the acquisition of Diamond Plaza in Kolkata for ₹347.5 crore, with the transaction expected to close in the first half of FY27.

 

On funding future acquisitions, Dantara said the Reit was likely to rely on debt rather than equity.

 

“At this stage, any fundraising is likely to be through debt. We would look at raising equity only if the size or nature of future acquisitions requires it,” he said.

 

He added that Nexus, with a loan-to-value ratio of around 18 per cent, had sufficient headroom to fund growth.

 

Despite concerns that geopolitical tensions in West Asia could weigh on discretionary spending, Dantara said the conflict had had the opposite effect on the company’s malls.

 

“Many families cancelled their travel plans to West Asia. Domestic travel also became expensive due to high demand, while East Asia became significantly more expensive. As a result, many families chose not to travel at all and instead spent more within their own cities,” he said.

 

According to Dantara, this translated into higher spending on shopping and dining at Nexus malls, with families dining out more frequently than they otherwise would have.

 

The company also saw its food and beverage tenants benefit during the liquefied petroleum gas shortage, as many of its malls have piped gas infrastructure, while others continued to receive LPG supplies because they house multiple restaurants.

 

This allowed mall-based restaurants to operate normally even as some standalone outlets faced disruptions, he said.

 

Earlier, Nexus reported an 11 per cent year-on-year growth in NOI to ₹510 crore for the first quarter of FY27, driven by growth in consumption and leasing. The Reit recorded quarterly consumption of ₹3,850 crore, up 17 per cent year-on-year.

 

Dantara said consumption momentum had continued into July, with growth remaining in double digits as the festive season approached.

 

While the June quarter outperformed internal expectations, Dantara said the trust was retaining its FY27 consumption growth guidance of 8-9 per cent until there was greater clarity on macroeconomic conditions after the second quarter.

 

“We had budgeted for around 8-9 per cent consumption growth. Q1 delivered nearly twice what we had originally anticipated. That said, we remain cautious because several macroeconomic factors are still evolving,” he said.

 

The Reit expects net distributable cash flow to be at the upper end of its earlier guidance of ₹9.8-10 per unit and continues to guide for 7-8 per cent NOI growth during FY27.

 

In FY26, the Reit’s NOI stood at ₹1,929.6 crore. It distributed ₹1,375.8 crore, equivalent to ₹9.081 per unit, during the year.

 

Alongside acquisitions, Nexus is also focusing on premiumising its portfolio by increasing the presence of jewellery, beauty, watches, eyewear and premium fashion brands, a strategy it believes will make the portfolio more resilient through economic cycles.