Blackstone-backed Nexus Select Trust, India's first retail real estate investment trust (REIT), has completed the acquisition of Vega City Mall in Bengaluru for Rs 9.13 billion, as announced in a regulatory filing on February 13. The total enterprise value of the acquisition includes a purchase price of Rs 8.69 billion and additional costs for planned capital expenditures, including renewables and closing costs.

With this acquisition, Nexus Select Trust now owns four malls in Bengaluru, totaling 1.7 million square feet, and six malls across Karnataka, with a combined portfolio of 2.7 million square feet. The company has plans to double its mall portfolio over the next five years. The Nexus Select Trust portfolio currently consists of 18 Grade-A shopping malls across 10.4 million square feet in 14 cities, along with two hotels (354 keys) and three office assets, offering a Gross Leasable Area of 1.3 million square feet.

Vega City Mall, located in South Bengaluru, is 96% leased to a diverse mix of both international and domestic brands. This acquisition further strengthens Nexus Select Trust's position in the retail real estate sector, aligning with its strategy to expand its high-quality asset portfolio.

In a separate transaction, Blackstone, which holds a 43 per cent stake in Nexus Select Trust, sold 330 million units of the REIT for approximately Rs 45.50 billion in August 2024. This sale was part of Blackstone's strategy to monetize its real estate holdings in India.

News source: Hindustan Times