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Earlier this week, the Indian Competition Commission gave its approval for Nexus Select Trust to purchase commercial real estate assets. In the proposed deal, Select Infrastructure and Nexus South Mall Management, two corporations operating via the management of the acquiring REIT, will indirectly purchase 100% of the shares of fifteen entities and indirectly acquire 100% of the shares of two entities.
Nexus Select Trust is supported by international investment company Blackstone. According to a press release, the proposed transaction calls for the direct acquisition of 100% of the shares of fifteen entities and the indirect acquisition of 100% of the shares of two entities acting through the manager of the acquirer REIT, Select Infrastructure Pt Ltd and Nexus South Mall Management Put Ltd. ICC also approved the purchaser REIT's (acting through its manager) direct acquisition of 50% of the equity shares of ITIPL from its current owners.
The Nexus Select Trust has a portfolio of over 17 operational shopping malls comprising of 10 million square feet spread across 14 major cities. It includes Select Citywalk Mall located in New Delhi which is said to contain over 3,00 stores. The estimated value of the Trust’s assets is said to be around $3 billion. It is being touted as India’s first REIT with rent-yielding retail real estate assets.
The primary sponsor of Nexus Select Trust REIT is Wynford Investments Limited, an affiliate of Blackstone Inc. The fund is managed by Blackstone along with a highly experienced and accomplished board of directors including former employees of IDFC, Asian Paints and Embassy REIT. Blackstone is collectively one of India’s largest office landlords with office space totally to 100 million square feet. It is also a formidable player in warehousing with more than 21 assets in the country.
The Nexus Select Trust REIT is India’s fourth REIT. The first REIT was launched in April 2019 by the name Embassy Office Parks REIT, backed by Blackstone and realty firm Embassy Group. In 2020, global investment firm Brookfield launched its REIT through an IPO raising 3,800 crore rupees followed by the K Raheja and Blackstone backed Mindspace Business Parks REIT that raised 4,500 crore rupees.
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