Blackstone Group, the entity behind India’s maiden REIT, is expected to file a draft prospectus with Sebi for an IPO of India’s first retail REIT, Nexus Select Trust or Nexus, partnering with Select Citywalk, Delhi.
The mall generates the highest tenant sales per sq ft for any mall in India.
The US-based private equity major’s portfolio of retail assets for this REIT is estimated to be valued at over ₹23,000 crore. Blackstone will own 60% of the proposed REIT, followed by Select City, which will own around 25%, and the remainder will be held by small shareholders.
“India is experiencing strong consumption tailwinds driven by a growing middle class. Blackstone is very bullish on the REIT asset class as the overall governance creates a transparent structure and is tax efficient,” said a person close to the development.
Nexus Malls, Blackstone’s wholly-owned retail properties subsidiary, is one of India’s largest retail real estate platforms, with 17 malls spread across 14 major cities. In a short span of five years, Nexus Malls owns and operates around 10 million sq ft of Grade A retail space in the country.
The global investor is looking at listing its retail assets’ REIT against the backdrop of rising consumption levels, favourable demographics and aspirational brands in the country.
The Indian retail market is under penetrated with only 13% organised retail versus 86% in the US. Brick-and-mortar retail and ecommerce continue to capture market share from unorganised retail, expected to witness a 23% CAGR from FY23E to FY25E.
