Nexus Select Trust, the country’s first REIT backed by rent yielding retail assets, will acquire a shopping mall in Bengaluru for ₹877 crore.
The Board of Directors of Nexus Select Mall Management Pvt Ltd, the manager of Nexus Select Trust has approved the acquisition of Vega City Mall in Bengaluru.
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“We wish to inform you that the Board of Directors of Nexus Select Mall Management Private Limited (previously known as Nexus India Retail Management Services Private Limited), Manager to Nexus Select Trust (“Trust”), at its Meeting held on October 16, 2024, has inter-alia (i) approved the acquisition of Vega City Mall situated in Bengaluruz,” the company said in a regulatory filing.
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The property consists of a fully functional mall having a total area of approximately 0.45 mn sq ft from Blue Horizon Hotels Private Limited and land on which the mall is constructed which is presently owned by A.S. Muniswamy Raju H.U.F for a total purchase consideration not exceeding ₹8,770 million or for a consideration as may be mutually agreed by the parties to the transaction, the company said in a regulatory filing.
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The acquisition by Nexus Select Trust will be through its special purpose vehicle Vijaya Productions Pvt Ltd and the deal is subject to execution of the transaction documents and fulfillment of customary and commercially agreed closing conditions.
“With this proposed acquisition, Nexus Select Trust, will consolidate its presence in Bengaluru and aim to benefit from embedded upsides from potential operational synergies,” the filing said.
The portfolio
Nexus Select Trust’s portfolio comprises 17 shopping malls with a gross leasable area of 9.9 million sq ft spread across 14 cities in India, two complementary hotel assets (354 keys) and three office assets with a gross leasable area of 1.3 mn sq ft. Its retail real estate assets have a tenant base of 1,000 domestic and international brands spanning across around 3,000 stores.
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In a typical REIT structure, the investor makes an investment in the broader REIT portfolio and has an exposure to all the real estate assets held by the REIT.
