Blackstone-sponsored Nexus Select Trust is planning to acquire more malls in major and strategic locations across the country, as part of its overall plan to ramp up its presence not only geographically but, also in terms of area, at an average rate of 1-1.5 million square feet, annually.
It is looking at both markets where they are present – that’s the first choice – and where they may not be represented. The REIT, currently has a portfolio of 17 malls with a gross leasable area of around 10 msf across 14 cities.
The prospective acquisitions could be in metro and non-metros. Its non-metro malls in Bhubaneswar and Mangalore, are doing well and the trust had turned around many of the malls in its portfolio by getting good tenants and rejigging the profile. If there was a good market and “no asset in that market that can be a possible acquisition target for the trust and it will also look at a couple of greenfield sites, but that would be an exception rather than the rule.
Nexus Select has been roughly adding around 1 to 1.5 msf a year and now has a playbook that allows to acquire and quickly stabilize the asset and then make it grow substantially more than its track record.
In FY24, Nexus Select Trust reported net operating income at Rs1,760 crore, meeting its guidance, while tenant sales rose 13 per cent to Rs12,000 crore. In FY25, it has guided for a 9 per cent growth in NOI and 9-10 per cent higher payout.
