Nexus Malls, the Indian retail portfolio arm of the investment banking firm Blackstone group, is in talks to acquire Delhi's Select Citywalk mall, which generates the highest sales per square foot in the country, business daily the Economic Times has reported.
The value of the transaction could be between Rs 3,000 crore and Rs 4,000 crore. The acquisition is part of Blackstone group's broader strategy to launch a retail real estate investment trust (REIT), the report said. The promoter of the Select group has not added any mall to the portfolio in the 15 years of operations of the Select Citywalk.
With no plan for expansion, the owners want it to be part of REIT, a public-listed company that houses rent-generating commercial, residential or retail complexes. There are three REITs for office space in the country but none are dedicated to retail assets as yet. The rental of the mall is about Rs 1,200 per square foot a month.
Blackstone has been trying to enter the nation capital region (NCR), of which Delhi is a part, market through acquisition and has been in talks to acquire projects in Noida as well, the report added.
