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SEBI has given the final approval and observations for Nexus Select Trust's initial public offering (IPO), the retail focused real estate investment trust (REIT) sponsored by private equity company Black Stone.
The Rs 4,000 crore IPO includes a fresh issue of Rs1,600 crore with the remaining funds coming through an offer of sale from its lead investor Blackstone and a few other smaller holders. The REIT's proceeds will be used to pay down debt.
The REIT expects to file its final bid document by May 15 in order to be listed. The company has a just a few more weeks to finish the formalities which include filing the final paperwork, making a pre-IPO placement, fixing the price band, starting the IPO, and eventually allocating the units.
The REIT's portfolio includes 17 malls totalling 10 million sq ft in leasable space, two hotels with 354 rooms, and three office buildings totalling 1.3 million square feet. The Select City Walk Mall in upscale Saket, Delhi is one of the mall assets that will be included in the REIT when it lists. The weighted average lease expiry for the assets is 5.6 years.
Nexus Select Trust is a financial investment product offered by Nexus Investment Management. It is a private investment trust that allows high net worth individuals, family offices and institutional investors to invest in a diversified portfolio of alternative assets such as private equity, real estate, infrastructure and private debt.
The trust is managed by a team of experienced investment professionals who seek to generate attractive returns for investors while managing risks through a rigorous investment process. Nexus Select Trust offers investors access to investment opportunities that may not be available through traditional public markets and provides a flexible and customizable investment solution to meet the unique needs of each investor.
A Real Estate Investment Trust (REIT) Initial Public Offering (IPO) is a type of public offering where a company creates a new REIT and offers its shares to the public for the first time. REITs are companies that own and operate income-producing real estate such as apartments, offices, hotels, and shopping centres.
By law, REITs must distribute at least 90% of their taxable income to shareholders, making them attractive to investors seeking regular income. REIT IPOs can provide a way for investors to gain exposure to the real estate market without having to purchase and manage property directly. However, as with any IPO, investors should carefully consider the risks and potential rewards before investing. REIT IPOs may be subject to market fluctuations, interest rate risks, and changes in the real estate market.
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