Nexus Select Trust to raise Rs 3,200 crores via India's first retail REIT public offering

Blackstone-sponsored Nexus Select Trust intends to raise up to Rs 3,200 crore through India's first retail REIT public offering. The entire amount of the public offering is Rs 3200 crore which consists of an offer for sale of up to Rs 1800 crore and a fresh issue of units up to Rs 1,400 crore. The company had previously intended for its proposed IPO to raise up to Rs 4,000 crore. The company submitted the offer document to SEBI and the issue will begin trading this week.

Nexus Select Trust submitted the draft red herring prospectus to SEBI in November of last year to begin its retail REIT public offering. The portfolio of Nexus Select Trust includes 17 operational shopping centres spread across 14 major cities, totaling 9.8 million square feet. The 9.8 million square feet portfolio of retail properties owned by Nexus Select Trust also includes the Select Citywalk Mall in south Delhi. This will be Blackstone's third REIT sponsorship.

The real estate investment trust (REIT), a prominent global instrument was launched in India a few years ago to increase investment in the real estate market by monetising rent-yielding properties. It allows for the engagement of retail investors and helps uncover the multiple value of real estate assets. Three REITs are currently listed on Indian stock exchanges which are Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust. However, all of these are leased office properties. Nexus Select Trust is the first REIT with holdings in retail real estate that yield rent.

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Nexus Select Trust to raise Rs 3,200 crores via India's first retail REIT public offering

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