Nexus Select Trust (NSE: NXST / BSE: 543913) has closed the acquisition of Vega City Mall, a premium Grade-A urban consumption centre located in an affluent neighbourhood of South Bengaluru. The mall, 96 per cent leased to a mix of international and domestic brands, is strategically positioned near an upcoming metro station, making it a highly accessible destination for shoppers.
This acquisition marks Nexus Select Trust's fourth asset in Bengaluru, strengthening its presence in one of India’s most vibrant consumption markets. The move also offers significant potential for operational synergies, contributing to the trust’s long-term growth strategy.
The acquisition of Vega City Mall was completed at an attractive valuation, approximately 10 per cent lower than the independent valuation. This accretive acquisition is expected to deliver a stabilised Retail Net Operating Income of Rs 78 crore. The transaction is NAV and DPU accretive, with an expected increase in Net Distributable Cash Flow (NDCF) by Rs 20 crore after servicing debt. Leveraging its strong balance sheet, Nexus Select Trust fully funded the acquisition through listed non-convertible debentures issued at a coupon rate of 7.70 per cent in Q3 FY25. Following the acquisition, the Loan-to-Value (LTV) ratio is 17 per cent.
Dalip Sehgal, Executive Director and Chief Executive Officer at Nexus Select Trust, said, "We are delighted to close the acquisition of Vega City Mall, a high-quality Grade-A urban consumption centre in an affluent South Bengaluru neighbourhood with a diversified tenant mix comprising international and domestic brands. This acquisition reaffirms the commitment to our business model and the promise we made at the time of listing to grow the portfolio through accretive acquisitions of high-quality assets. Vega City Mall is located in a dense catchment and deepens our presence in Bengaluru, which remains one of India’s strongest consumptions markets and significantly enhances our scale and ability to deliver embedded growth.
The transaction is NAV and DPU accretive as we have acquired this high-quality asset at an approximately 10 per cent discount to the independent valuation. This acquisition aligns perfectly with our overall strategy to maximize total returns for our unitholders. Given Nexus’s existing strong presence in Bengaluru, we believe this acquisition will result in synergies in leasing, operations and marketing. With a strong balance sheet post-acquisition, we continue to be well-positioned to deliver further inorganic growth opportunities.”
