Nexus Select Trust Expands Retail Portfolio with Inorganic Growth Strategy

Nexus Select Trust, a leading real estate investment trust (REIT) in India, is aggressively expanding its retail portfolio through an inorganic growth strategy, which includes acquiring five more retail properties in the country. The trust, backed by US-based private equity major Blackstone, has signed term sheets to acquire two retail assets totaling 0.8 million sq ft in the quarter ended June. The acquisition pipeline remains robust with ongoing discussions for another five assets. Nexus Select Trust is aiming to double its assets portfolio to 20 million sq ft in the next five years with an acquisition-led growth strategy.

Key Takeaways:

• Nexus Select Trust has signed term sheets to acquire two retail assets totaling 0.8 million sq ft, in addition to its ongoing work on five acquisitions.
• The trust aims to double its assets portfolio to 20 million sq ft in the next five years with an acquisition-led growth strategy.
• Nexus Select Trust has completed due diligence for a portfolio of three assets with 1 million sq ft in South India and is awaiting regulatory approval.
• The trust has already acquired a majority stake in eight retail properties from Prestige Estates Projects and made investments of around Rs 100 crore to refurbish and reposition the malls.
• Nexus Select Trust has reported 8% on-year growth in retail net operating income of Rs 371.9 crore for the first quarter ended June, in-line with 2024-25 projections.
• The trust has declared distribution of Rs 325.3 crore or Rs 2.15 per unit for the quarter.

Statistics:

• 0.8 million sq ft: total retail assets to be acquired in the quarter ended June.
• 20 million sq ft: target assets portfolio size in the next five years.
• Rs 371.9 crore: retail net operating income for the first quarter ended June.
• Rs 325.3 crore: distribution declared by the trust for the quarter.
• 8%: on-year growth in retail net operating income.
• 14%: loan to value (LTV) on the trust's balance sheet.
• 8.1%: debt cost of the trust.

Sources:

• "Nexus Select Trust to acquire two more retail assets in Q1: CEO Dalip Sehgal" by ET (March).
• "Nexus Select Trust aims to double portfolio to 20 million sq ft by FY2029" by ET (March).