Global investment firm Blackstone-sponsored Nexus Select Trust is likely to launch India's first retail REIT public offer in early May to raise up to Rs 4,000 Cr.
- India has had 3 REITs since 2019: Brookfield India REIT, Mindspace Business REIT, and Embassy Office REIT. But, all the above are leased office assets
- With Nexus Select Trust, India will witness its first REIT with rent-yielding Retail Real Estate
About Nexus Select Trust REIT-
- The size of the IPO of Nexus Select Trust REIT will be around Rs 4,000 Cr., of which Rs 1,600 Cr. would be a primary offering of shares
- Part of the proceeds will be utilized to bring down debt, which stood at Rs 4,500 Cr. at the end of the June quarter
- In its portfolio of 9.8 million square feet of retail Real Estate, Nexus has also included Select Citywalk Mall in south Delhi
- There are around 3,000 stores across 17 shopping malls while the number of brands is nearly 1,100
- On the operational front, the occupancy level in the malls currently stands at 94 percent with an annual footfall of over 130 million
- The net operating income of Nexus Select Trust is projected to grow by nearly Rs 1,400 Cr. during the last fiscal.
- Stats show that Indian Retail Market dipped to $883 billion in 2020 from $1 trillion in 2019. But post that, it has only grown over years; from 1.294 trillion in 2022 and 1.3 trillion in 2023. It is expected to surpass $1.7 trillion in 2026
- This will have a direct positive impact on retail Real Estate demand in India, as well as the related REIT
- With its strong portfolio, Nexus Selet Trust REIT seems to have great potential for generating good returns and providing value to its investors?
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