Blackstone-backed Nexus Select Trust set to launch Rs 3,200 cr REIT IPO on May 9

Key Points of Nexus Select Trust REIT IPO

• Nexus Select Trust, sponsored by Blackstone, will launch the first Real Estate Investment Trust (REIT) IPO in India, backed by rental income-generating retail real estate assets.
• The IPO is expected to go live on May 9 and could raise up to Rs 3,200 crore, with SEBI already receiving the offer documentation.
• The IPO comprises an offer for sale (OFS) of up to Rs 1,800 crore and an additional issue of units worth up to Rs 1,400 crore.
• Nexus Select Trust has a portfolio of 17 active retail centres, totaling 9.8 million square feet, located in 14 major Indian cities.
• This will be Blackstone’s third REIT in India, following the Embassy Office Parks and Mindspace Business Parks REITs.
• The retail REIT will offer retail investors access to the real estate market and the considerable value of real estate assets.
• Despite the COVID pandemic, India’s retail industry has shown resiliency and steady growth, making a retail REIT an attractive investment for both individual and institutional investors.
• Investing in a retail REIT allows diversification of risk across a varied portfolio of properties, providing stability and long-term potential in the retail sector.

Details of Nexus Select Trust REIT IPO

The first Real Estate Investment Trust (REIT) IPO in India will be launched by Nexus Select Trust, which is supported by retail real estate assets that generate rental income. Blackstone is the sponsor of Nexus Select Trust.

The IPO, which is expected to go live on May 9, might raise up to Rs 3,200 crore. The offer documentation is already on file with SEBI (Securities and Exchange Board of India).

The offer for sale (OFS) of up to Rs 1,800 crore and the additional issue of units worth up to Rs 1,400 crore together make up the total value of the IPO, which will be Rs 3,200 crore.

In 14 major cities, Nexus Select Trust holds a portfolio of 17 active retail centres totaling 9.8 million square feet. Following India’s first REIT Embassy Office Parks and Mindspace Business Parks REIT, this will be the third REIT sponsored by Blackstone.

Retail investors will be able to engage in the real estate market and access the enormous value of real estate assets thanks to the planned retail REIT.

After the COVID pandemic, Gagan Randev, Executive Director of India Sotheby’s International Realty, observed that India’s retail industry had exhibited resiliency and steady growth. Individual and institutional investors can diversify their risk over a diverse portfolio of properties by investing in a retail REIT, which offers the stability and long-term potential of the retail sector.

About Nexus Select Trust:

Nexus Select Trust holds the title of India’s foremost real estate investment trust and consumption center platform. It boasts 17 first-rate Urban Consumption Centers, situated in 14 cities, making it the best in the country. The company has an excellent tenant mix, encompassing various sectors, including but not limited to, apparel and accessories, hypermarkets, entertainment, and food and beverages (F&B). Additionally, Nexus is actively engaged in over 50 ESG initiatives to create a favorable impact on people and the environment.

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