Blackstone-backed Nexus Select Trust, India’s first retail REIT, Thursday said it has inked an agreement to acquire a mall in Bengaluru in an all-cash deal.
Vijaya Productions Pvt Ltd, a special purpose vehicle of the real estate investment trust, will acquire Vega City Mall from Blue Horizon Hotels Pvt Ltd for a consideration of up to $104.4 million (Rs 877 crore). The proposed acquisition, which will help Nexus Select Trust consolidate its presence in the city, is expected to conclude by October 22.
According to an exchange filing, Blue Horizon reported revenues of Rs 85.3 crore in FY23 and Rs 92.7 crore in FY24 from the mall’s operations.
Nexus has 17 “Grade-A” retail real estate assets across 14 cities with approximately 10 million square feet of space, according to its website. As of the June 2024 quarter, it had recorded Rs 3,000 crore of tenant sales and 97.4% of retail portfolio occupancy.
It listed on the exchanges last year in what was the second-largest IPO of 2023.
Blackstone sold a near 20% stake or 315.5 million units in Nexus Select in August this year. The deal was value at $505 million (Rs 4,240 crore), according to data from VCC Edge. This added to liquidity worth Rs 1,800 crore ($220 million) during the REIT’s public offering in 2023, taking Blackstone's total harvest from the operator of shopping malls to Rs 6,155 crore at the time.
The global investment firm still holds close to 23% stake in the company, currently worth Rs 4,658 crore ($555 million).
Blackstone, the largest alternative asset manager globally, has over $1 trillion in AUM, with over 12,400 real estate assets and more than 230 portfolio companies, as of March 31, 2024.