Nexus Select Trust, the listed retail REIT sponsored by Blackstone entities, announced its foray into Northeast India through the acquisition of a mall and hotel in Beharbari, Guwahati, for Rs 1,600 crore. Nexus will acquire the upcoming Galaxy Complex, comprising the 0.5-million sq ft Nexus Galaxy Mall and the 164-key Hyatt Regency Hotel.
At the acquisition price, the deal implies an 8.25-8.50% acquisition cap rate for the mall and an 11.5-12.5x Ebitda multiple range for the hotel, the REIT said.
The deal is proposed to be funded through an estimated 40% debt raise, with the balance through fresh unit issuance and unit swap. The final funding mix will be determined at transaction closure.
The assets will be developed by the seller to mutually agreed specifications. Nexus will assume operational responsibility upon completion of construction and receipt of necessary approvals, the REIT said in a release. The transaction is expected to be net asset value (NAV) and distribution per unit (DPU) accretive upon acquisition, it said.
Post-acquisition loan-to-value (LTV) will stand below 20%, thereby maintaining pro forma debt headroom of $1 billion for future inorganic growth opportunities, it said.
“The acquisition will enable us to scale across East India’s key consumption hubs like Kolkata, Guwahati, Siliguri, Patna, Bhubaneswar, Ranchi and Jamshedpur,” Dalip Sehgal, executive director and chief executive officer, Nexus Select Trust, said.
With its East India pipeline of six Grade-A retail assets totalling nearly 3.6 million square feet across four key cities, the trust is building a dominant presence in the region, he said.
“Our ambition is to build an East India portfolio generating over Rs 600 crore of NOI, contributing more than 25% of our existing portfolio NOI, meaningfully advancing our long-term vision of a resilient, pan-India platform anchored in growth, sustainability, and consumer delight,” he said.