Now you can own Apple, Starbucks, Zara, H&M, McDonald's, and Lifestyle through Nexus Select IPO.
You can now own Apple, Starbucks, Zara, H&M, McDonald's, Lifestyle, Cinepolis, PVR Cinemas, Westside, Max, Reliance Trends, etc..
Yes, This is possible through Nexus Select Trust REIT IPO.
They rent out their properties to around 1000 varied brands in 3000 stores, including Apple, Starbucks, Zara, H&M, McDonald's, Shoppers Stop, and many others.
What are REITs?
REIT is a company that owns, operates, or finances real estate to generate income. REITs are like Mutual Funds which invest in real estate. This way, investors can get good & stable returns in the form of dividends without bearing the stress of owning or managing the properties.
Nexus Select Trust REIT is a platform of various assets that serve as consumption infrastructure for India’s population. The portfolio comprises of 17 grade-A urban consumption centers with a total leasable area of 9.2 msf, two complementary hotel assets (354 keys) and three office assets (1.3 msf) as of December 31, 2022.
IPO Date: May 9, 2023 to May 11, 2023
Price: ?95 to ?100 per share
Lot Size: 150 Shares
Total Issue Size [.] shares
(aggregating up to ?3,200.00 Cr)
Fresh Issue [.] shares
(aggregating up to ?1,400.00 Cr)
Offer for Sale [.] shares of ?
(aggregating up to ?1,800.00 Cr)
Issue Type Book Built Issue REIT
Listing At BSE, NSE
Nexus Select Trust REIT Reservation:
QIB: Not more than 75% of the Net offer
NII (HNI): Not less than 25% of the Offer
Total Shares Offered: 185,263,050
Book Running Lead Managers to this issue are BofA Securities India Ltd., Axis Capital Ltd., Citigroup Global Markets India Pvt. Ltd., HSBC Securities and Capital Markets (India) Pvt. Ltd., IIFL Securities Ltd., JM Financial Ltd., J.P. Morgan India Pvt. Ltd., Kotak Mahindra Capital Co. Ltd., Morgan Stanley India Co. Pvt. Ltd., and SBI Capital Markets Ltd.
Registrar of the issue: KFin Technologies Ltd.
Object of the Issue:
Currently, India has only 3 REITs listed, & 1 more is coming on the way, named Nexus Select Trust REIT IPO. Nexus Select Trust is a REIT backed by a global investment firm, Blackstone.
This will be India's first REIT (Real Estate Investment Trust) IPO backed by rent-yielding retail real estate assets. At present, there are 3 listed REITs on stock exchanges, but all are backed by office assets.
REIT, a popular instrument globally, was introduced in India a few years ago to attract investment in the real estate sector by monetising rent-yielding assets.
The three-day IPO is a fresh issue of units worth up to ? 1,400 crore and an Offer For Sale (OFS) of up to ? 1,800 crore.
The ? 3,200 crore retail REIT public issue has fixed the price band at ? 95 per unit to Rs 100 per unit for the proposed issue.
?Nexus Select Trust has a portfolio of 17 operational shopping malls across 14 major cities, covering a 9.8 million square feet area. They rent out their properties to around 1000 varied brands in 3000 stores, including Apple, Starbucks, Zara, H&M, McDonald's, Shoppers Stop, and many others.
Reits & Invits being a new asset class, has gained popularity.
Mutual funds investing in them have increased significantly after covid.
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The holding value of ? 724 crores in March 2020 is now around ? 5200 crores in March 2023.
Key promoter Blackstone’s shareholding in Nexus Select Trust will come down to 43 percent from 60 percent post the IPO.
This will be the third REIT sponsored by Blackstone as it had launched India's first REIT Embassy Office Parks and then Mindspace Business Parks REIT.
The company's total income for the first nine months of 2022-23 stood at Rs 1,498.35 crore and it is projecting net income to grow by 17 per cent in 2025-26.
Nexus Select Trust raises Rs 1,440 crore via anchor book ahead of IPO.
Anchor Book:
Financial:
According to Nexus Select Trust’s financials, their assets have decreased from Rs.9,527.63 crore in March 2020 to Rs. 9,052.07 crore in March 2022.
Their revenue from operations has also decreased, from Rs.1,621.97 crore in March 2020 to Rs. 1,318.21 crore in March 2022. Further, its earnings turned negative as it reported a loss of Rs 10.95 Crore against a profit of Rs 2,06.7 Crore in March 2020.
It is also notable that the company’s borrowing has risen from Rs.5,955.67 crores in March 2020 to Rs. 6,311.20 crores on March 22.
The company is well-positioned for substantial organic growth as a result of contractual rent increases, increasing tenant sales, higher Turnover Rentals, and re-leasing at higher market rates. Between FY23 and FY25, their Portfolio’s total NOI is expected to expand organically by 26.8%, up from 15.9%.
Distribution policy:
The Manager shall declare and distribute at least 90% of the net distributable cash flows of the Nexus Select Trust as distributions ("REIT Distributions") to the Unitholders. Such REIT Distributions shall be declared and made not less than once every six months in every FY.
Tax benefits:
The possible tax benefits available to Nexus Select Trust (the "Trust") and its unitholders under the Income-tax Act, 1961 ('the Act') as amended by the Finance Act, 2023 read with the Income Tax Rules, 1962, i.e. applicable for the Financial Year 2023-24 relevant to the assessment year 2024-25 (referred to as 'the Direct Tax Law'), presently in force in India.
Comparison with listed peers:
As per the offer document, NST has no listed peers to compare with. As all existing listed REITs in India operate primarily in the commercial office sector.
Nexus Select Trust's?latest IPO GMP is?? 4/-
Key risks:
General slowdown in economic activities, unfavorable government policies and regulations, sustained higher inflation levels, lower-than-expected net distributable cash flows, and delay or difficulty in expanding the portfolio assets under management.
Disclaimer: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult their financial advisor before making any actual investment decisions, based on the information published here.?
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