Expectedly the entity may file a draft prospectus with SEBI (Securities and Exchange Board of India) for an Initial Public Offer of India’s first retail real estate investment trust (REIT), Nexus Select Trust or Nexus, partnering with Select Citywalk, Delhi
Blackstone Group is planning to raise nearly 500 million dollar by selling units in the nation’s first retail real estate investment trust (REIT) to institutional and retail investors, revealed a regulatory filing.
Expectedly the entity may file a draft prospectus with SEBI (Securities and Exchange Board of India) for an Initial Public Offer of India’s first retail REIT, Nexus Select Trust or Nexus, partnering with Select Citywalk, Delhi. Blackstone Group is behind India’s maiden REIT.
As compared to any other mall in India, this mall generates the highest tenant sales per sq ft.
The retail assets for this REIT of the US-based private equity major’s portfolio accounts around Rs 23,000 crore or more. Considering the proposed REIT, Blackstone will now own 60 per cent, followed by which Select City will own nearly 25 per cent and the remainder will fall in the bucket of small shareholders.
According to an official, currently India is going through a strong consumption tailwind driven by a growing middle class. As the overall governance is creating a transparent structure and is also tax efficient, the entity was seen bullish on the REIT asset class.
Nexus Malls, India’s is one of the largest retail real estate platforms has 17 malls in 14 major cities. It is the wholly-owned retail properties subsidiary of Blackstone. Nexus Malls owns and operates nearly 10 million sq ft of Grade A retail space in the country, in a short span of five years.
The global investor is planning the listing of its retail assets’ REIT against the backdrop of rising consumption levels, favourable demographics and aspirational brands in the country.
The Indian retail market is under-penetrated with only 13 per cent organised retail against 86 per cent in the US. Brick and mortar retail and ecommerce continue to capture market share from unorganised retail and is expected to witness a 23 per cent CAGR from FY23E to FY25E.