First Retail REIT in India

?India gets its first Retail REIT Nexus Select Trust . overall, it's the fourth REIT in India and the third backed by Blackstone. it has a dividend yield of around 8%, which is higher than fixed deposits and G-sec.

• ?The Portfolio comprises 17 best-in-class Grade A urban consumption centers with a total Leasable Area of 9.2 msf, 2 complementary hotel assets (354 keys) and 3 office assets (1.3 msf) as of December 31, 2022. Their assets are strategically located across 14 leading cities in India.?

• ?Their Portfolio has a tenant base of 1,044 domestic and international brands with 2,893 stores as of December 31, 2022, and is well diversified across cities with no single asset and tenant contributing more than 18.3% and 2.8% of the total Gross Rentals for the month of December 31, 2022, respectively.?

• ? Their Portfolio is highly stabilized with Committed Occupancy of 96.2% and 5.7-year WALE(weighted average lease expiry) as of December 31, 2022. Their Portfolio’s total NOI is projected to grow organically by 17.1% between FY24E and FY26E.?

India also Improved its rankings in the International Logistics Performance Index(LPI) climbing to 38th from its previous 44th.?

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India currently ranks 38th in Logistics Performance Index(LPI) with an aggregate score of 3.4, it was in 44th rank with an aggregate score of 3.14 back in 2018.

what is Logistics?

Logistics refers to the process of planning, implementing, and controlling the movement and storage of goods and services from the point of origin to the point of consumption. It involves a range of activities, such as transportation, warehousing, inventory management, packaging, and information management.

what is LPI?

The International Logistics Performance Index (LPI) is a tool used to measure the performance of logistics systems in different countries. It is published by the World Bank every two years and ranks countries based on six key dimensions: customs, infrastructure, international shipments, logistics competence, tracking and tracing, and timeliness. The LPI is an important indicator of a country's logistics capabilities and can influence investment decisions by businesses and governments.

International logistics performance can have an impact on real estate in a number of ways. For example:

1. Logistics hubs: Countries with high LPI scores are likely to attract logistics companies looking to establish regional hubs. This can lead to increased demand for industrial real estate, such as warehouses and distribution centers.

2. Infrastructure investment: Countries with lower LPI scores may need to invest in infrastructure to improve their logistics capabilities. This can create opportunities for real estate developers and investors who specialize in infrastructure projects.

3. Supply chain resilience: The COVID-19 pandemic highlighted the importance of supply chain resilience, with many companies reevaluating their logistics networks. Countries with high LPI scores may be seen as more resilient and therefore more attractive to businesses, potentially driving demand for commercial real estate.

Overall, the LPI can be a useful tool for understanding the logistics capabilities of different countries and how they may impact real estate markets.

with our counterpart China, we are only 30bps behind. Infrastructure score is the most laggard indicator but with the Government' push towards promoting India as a factory for the world and schemes like PLI & NLP it will further improve its ranking in the coming years and target the laggards.

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