- Expected to be the first publicly listed consumption centre REIT in India upon the listing of Units on the Stock Exchanges
- The price band for the REIT’s IPO is in the range of ₹95 to ₹100 per unit
- Anchor Investor Bidding Date – Monday, May 8, 2023
- The IPO will open on Tuesday, May 9, 2013 and will close on May 11, 2023.
- Bids can be made for a minimum of 150 Units and in multiples of 150 Units thereafter by Bidders other than Anchor Investors
NE BUSINESS BUREAU
AHMEDABAD, MAY 4
Global investment firm Blackstone-sponsored Nexus Select Trust, the owner 17 Grade A malls, including Ahmedabad One Mall – two hotels and three office assets, has announced an initial public offering of units for a price of up to ₹100 per unit aggregating up to ₹3,200 crore.
The public offer comprises a fresh issuance of units aggregating up to ₹1,400 crore (Fresh Issue) and an offer for sale of units by the selling unitholders aggregating up to ₹1,800 crore (Offer for Sale). The price band has been fixed from ₹95 per unit to ₹100 per unit. Bids can be made for a minimum of 150 units and in multiples of 150 units thereafter.
This will be India’s first Real Estate Investment Trust IPO. At present, there are three listed REITs on stock exchanges but all backed by office assets.
The Price Band for the Offer has been fixed from Rs. 95 per Unit to Rs. 100 per Unit at a 22 per cent discount to the net asset value of the units.. The IPO will open on Tuesday, May 9, 2013 and will close on May 11, 2023. Anchor Investor Bid/Offer Period shall be one Working Day prior to the Bid/Offer Opening Date; i.e., Monday, May 8, 2023.
Chris Heady, Chairman of Asia Pacific and Head of Real Estate Asia, Blackstone, said: “We are thrilled to launch Nexus Select Trust, India’s first retail-focused REIT. This reaffirms Blackstone’s commitment to India, where we have built a strong presence for more than 15 years and participated in the launch of its first two REITs.”
Dalip Sehgal, Chief Executive Officer of Nexus Select Mall Management Private Limited, said: “Nexus Select Trust is India’s largest mall platform and is well-positioned to capitalize on India’s unique consumption tailwinds. We are excited to be at the forefront of India’s retail journey.”
Chief Operations Officer of Nexus Malls Jayen Naik said, “We are not developers doing the business of building malls, but acquiring them. We acquire, upgrade, and reposition malls so as to increase rental yields. Our focus is on increasing shopper traffic through marketing. There are around 3,000 stores across our 17 shopping malls while the number of brands is nearly 1,100.”
Nexus CFO Rajesh Deo said, “Mall developers are generally not proficient in running them profitably. Hence, we see great scope for more acquisitions. India currently has around 100 Grade A malls with 95% occupancy and they are all potential acquisition targets. After the acquisition, we continuously transform the malls by pumping in investments. In the last 8 years, we have spent Rs 100 crore for renovation of all malls. Ahmedabad One’s operating income is Rs 110 crore in FY23 which was Rs 45 crore in 2015.”
REIT, a popular instrument globally, was introduced in India a few years ago to attract investment in the real estate sector by monetising rent-yielding assets. It helps unlock the massive value of real estate assets and enables the participation of retail investors.
Wynford Investments Limited (a portfolio company of Blackstone funds) is the Sponsor of Nexus Select Trust and Nexus Select Mall Management Private Limited is the Manager. Axis Trustee Services Limited is the Trustee of Nexus Select Trust.
The Book Running Lead Managers to the Offer include BofA Securities India Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited, IIFL Securities Limited, JM Financial Limited, J.P. Morgan India Private Limited, Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited and SBI Capital Markets Limited.
