Blackstone-backed Nexus Select Trust REIT’s Rs 3,200 crore IPO will open for subscription on 9 May. The public offer comprises a fresh issue of units up to Rs 1,400 crore and an offer for sale (OFS) component with unitholders offloading units up to Rs 1,800 crore. The issue size was earlier proposed to be Rs 4,000 crore.
Not more than 75% of the offer is allocated for institutional investors and 25% of the IPO is reserved for non-institutional investors. Additionally, the manager may allocate up to 60% of the Institutional Investor portion to anchor investors on a discretionary basis. For REIT IPOs, NIIs are those who purchase units worth up to Rs 5 lakh in the trust. The IPO will close for subscription on 11 May, Thursday. The date of allotment of units is projected to be 17 May, Wednesday, following which, the issue is expected to list on the bourses on 19 May. The price band for the IPO is yet to be confirmed.
About Nexus Select Trust
Nexus Select Trust boasts of 17 malls located across 14 cities, including Delhi (Select Citywalk), Navi Mumbai (Nexus Seawoods), Bengaluru (Nexus Koramangala), Chandigarh (Nexus Elante), Ahmedabad (Nexus Ahmedabad One) among others. According to the RHP, the trust’s portfolio constituted 30% of India’s total discretionary retail spending in FY20 and had an average population CAGR that was 226 bps higher than the national average from financial years 2011 to 2021. In addition to the malls, the trust also comprises three offices and two hotels. One of the trust’s properties, Select Citywalk, was in the limelight recently for housing one of India’s two exclusive Apple stores.
“Our portfolio has a tenant base of 1,044 domestic and international brands with 2,893 stores as of December 31, 2022 and is well diversified across cities with no single asset and tenant contributing more than 18.3% and 2.8% of our total Gross Rentals for the month of December 31, 2022, respectively. We have curated a healthy mix of tenants across sectors such as apparel and accessories, hypermarket, entertainment, and food and beverages in order to provide a holistic shopping and entertainment offering to consumers,” said the company in its filing with the capital markets regulator.
This IPO will be the third REIT sponsored by Blackstone. It launched India’s first REIT, Embassy Office Parks, and then the Mindspace Business Parks REIT. Apart from the two, Brookfield India Real Estate Trust is India’s third listed REIT and is not backed by Blackstone. However, while these three REITs are focussed on office spaces, Nexus Select Trust will be India’s first listed rent-yielding retail REIT. Morgan Stanley, JP Morgan, Kotak Mahindra Capital, Axis Capital, and BoA ML are the bankers for the proposed public issue.