Nexus REIT to Launch INR 4000 Crores IPO in May 2023

Nexus REIT IPO May 2023

Nexus Select Trust REIT, India's first real estate investment trust (REIT) with retail properties, will initiate its initial public offering to raise more than INR 4,000 crore in the first week of May, 2023 according to concerned sources.

This will be Blackstone's third REIT in India, including its previous two office-focused trusts. Embassy REIT, supported by an institutional investor, was India's first REIT to début on the public market in 2019, while Mindspace REIT went public in 2021. 

The DRHP (draught red-herring prospectus) for the Nexus REIT was filed in mid-November, and the process is proceeding to submit the offer document by mid-April in the coming days. The total asset value of the portfolio is estimated to exceed USD 3 billion.

Portfolio assets of Nexus Select Trust are estimated to exceed USD 3 billion

The portfolio of Nexus Select Trust consists of 17 operational commercial complexes in 14 main cities in India, totaling 10 million square feet of retail space. These properties are located in cities such as Delhi, Bengaluru, Navi Mumbai, Chandigarh, Chennai, and Hyderabad, which collectively account for 30 percent of the nation's discretionary retail expenditure and have experienced rapid population growth.

According to the DRHP, the retail portfolio of over 3,000 stores including the Select Citywalk Mall in south Delhi,  has an occupancy rate of 95% and an annual foot traffic of over 130 million consumers. 

The proposed REIT portfolio will also include the recent acquisition of commercial assets by global institutional investors, including complexes in Bengaluru, Chennai, and Hyderabad.