Nexus Select Trust acquires Vega City Mall in Bengaluru for Rs 913 crore

Nexus Select Trust, India’s first retail-focused real estate investment trust (REIT), has acquired Vega City Mall in South Bengaluru for Rs 913 crore. The mall is a Grade-A retail property spread across nearly 0.5 million sq ft, according to a report by The Economic Times.

 

According to the news report, this is Nexus Select’s fourth mall acquisition in Bengaluru, making it the largest retail platform in the city in terms of the number of malls. The total value includes Rs 43 crore for planned improvements, such as renewable energy projects and other upgrades.

 

“The transaction is net asset value and distribution per unit accretive as we have acquired this high-quality asset at around 10 per cent discount to the independent valuation. This acquisition aligns perfectly with our overall strategy to maximise total returns for our unitholders,” Nexus Select executive director & CEO Dalip Sehgal told The Economic Times.

 

Debt-financed expansion strategy

The deal was fully financed through debt, using non-convertible debentures (NCDs) issued at a 7.70 per cent interest rate in the December quarter. With this purchase, Nexus Select’s loan-to-value ratio now stands at 17 per cent.

 

Nexus Select Trust is India’s first publicly listed retail-focused Real Estate Investment Trust (REIT). Established in 2016, it has rapidly become a significant player in the country’s retail real estate sector. The trust’s portfolio comprises 17 Grade-A urban consumption centers, totalling approximately 9.9 million square feet of gross leasable area, spread across 14 cities in India.

Nexus Select Trust’s financial performance

According to the media reports, for the first half of the fiscal year 2025, the trust reported a net operating income of Rs 7.4 billion and revenue from operations totalling Rs 11.1 billion. As of September 30, 2024, the loan-to-value ratio stood at 14 per cent, indicating prudent financial management.