JOIN USNexus Select Trust sets IPO band at Rs 95-100 apiece
Blackstone-backed Nexus Select Trust -- India’s first retail-focused real estate investment trust (REIT) -- will roll out its Rs 3,200 crore initial public offering (IPO) between May 9-11 at Rs 95-100 apiece, the issuer announced on Wednesday. Bidding for anchor investors will open and conclude on May 8.
“Nexus Select Trust is India’s largest mall platform and is well-positioned to capitalise on India’s unique consumption tailwinds. We are excited to be at the forefront of India’s retail journey,” said Dalip Sehgal, chief executive of Nexus Select Mall Management Private Limited.
The offer includes a fresh issue of units worth Rs 1,400 crore and an offer for sale up to Rs 1,800 crore. Bids can be made for a minimum of 150 units and in multiples of that thereafter. The REIT is expected to be listed on stock exchanges on May 19.
This comes at a time when several players such as Fabindia and Joyalukkas India, among others, have deferred or scrapped their listing plans, owing to market volatility and global macroeconomic trends.
The REIT’s portfolio comprises 17 grade-A shopping malls with 3,000 stores, two complementary hotel assets and three office assets. This will be the third REIT sponsored by Blackstone.
“With inflation and rising interest rates, REITs offer a very hedged performance. To give you a sense, retail participation as a result of this has increased in REITs almost 18 times since we first launched Embassy (Embassy Office Parks REIT) back in 2019,” said Asheesh Mohta, Senior Managing Director, Blackstone, at the press conference on Wednesday.
Nexus Select Trust, which was growing at 11 per cent compound annual growth rate (CAGR) prior to the Covid-19 pandemic, exhibited a 28 per cent higher recovery in December 2022 compared to the same period in FY 2019-20, Sehgal highlighted.
Axis Capital Limited, IIFL Securities Limited, JP Morgan India Private Limited and Kotak Mahindra Capital Company Limited are among the book-running lead managers to the offer.
At present, there are three listed REITs on Indian bourses -- Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust -- but each dealing in leased office assets.