Nexus REIT plans to float Rs 4,000-crore IPO in May 2023

Global private equity major Blackstone Group-sponsored Nexus Select Trust REIT, India’s maiden real
estate investment trust (REIT) with retail properties, is set to launch its initial public offering to raise over
4,000 crore in the first week of May, said persons with direct knowledge of the development.
This will be Blackstone’s third REIT in the country, including both of the earlier trusts that housed office
properties. Embassy REIT, backed by an institutional investor, was India’s first REIT and made its public
market debut in 2019, while Mindspace REIT listed in 2021.”The DRHP (draft red-herring prospectus)
for the Nexus REIT was filed in mid-November, and the process is underway to file the offer document
by mid-April in the next few days…the total asset value of the portfolio is estimated to be over $3 billion,”
said one of the persons mentioned above. Nexus Select Trust has a portfolio of 17 operational shopping malls across 14 major cities in India,
covering 10 million sq ft of retail space. These properties are in cities including Delhi, Bengaluru, Navi
Mumbai, Chandigarh, Chennai and Hyderabad that collectively represent 30% of the country’s
discretionary retail spending and have seen strong population growth
The retail portfolio, with over 3,000 stores, has a total occupancy rate of 95% and witnesses an annual
footfall of over 130 million shoppers, according to the DRHP. ET was the first to report that this retail
REIT portfolio will include south Delhi’s Select Citywalk Mall.
The proposed REIT portfolio will also include the global institutional investors’ recent acquisition
of Prestige Group’s commercial assets, including malls in Bengaluru, Chennai and Hyderabad.