Nexus Select Trust, sponsored by global investment firm Blackstone, plans to raise up to Rs 3,200 crore from India’s first retail REIT public offer. The total size of the public issue is Rs 3200 crore, which includes an offer for sale of up to Rs 1800 crore and a new issue of units up to Rs 1,400 crore.
The company initially planned for its proposed Initial Public Offer (IPO) to raise up to Rs 4,000 crore.
The company filed an offer document with market regulator SEBI, and the issue will begin trading in the second week of May.
To launch its retail REIT (Real Estate Investment Trust) public issue, Nexus Select Trust filed the draft red herring prospectus with SEBI in November last year.
With a total area of 9.8 million sq ft Nexus Select Trust’s portfolio of 17 operating shopping malls is spread throughout 14 major cities.
This will be the third REIT sponsored by Blackstone.
It launched India’s first REIT Embassy Office Parks and Mindspace Business Parks REIT.
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.
Retail investors are allowed to participate, which helps uncover the immense worth of real estate assets.
The three listed REITs on the Indian stock exchanges at the moment are Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust, all of which are leased office assets.
Nexus Select Trust will be the first REIT with rent-yielding retail real estate assets.
Nexus Select Trust’s $ 9.8 million square feet of retail real estate portfolio includes Select Citywalk Mall in south Delhi.