Last update: April 29, 2023, 12:20 p.m. HST
Nexus Selct Trust has filed its offering document with market regulator SEBI for its IPO.
This will be the first REIT IPO in India backed by rental-generating commercial real estate assets; currently there are three publicly traded REITs but all backed by office assets
Blackstone-sponsored global investment firm Nexus Select Trust will hit the capital market on May 9 to raise up to Rs 3,200 crore through its retail REIT initial public offering (IPO). This will be the first IPO of an Indian REIT (Real Estate Investment Trust) backed by rental-generating commercial real estate assets. Currently, there are three publicly traded REITs, but all backed by office assets.
Nexus Selct Trust has filed its offering document with market regulator SEBI for its IPO. According to the offering document, the total size of the public issue is Rs 3,200 crore, which includes a new issue of units worth up to Rs 1,400 crore and an offer to sell (OFS ) up to Rs 1,800 crore.
Previously, the company had planned to raise up to Rs 4,000 crore from its proposed public REIT issuance.
In November last year, Nexus Select Trust filed the Draft Red Herring Prospectus (DRHP) with Sebi to launch its retail REIT public offering.
Nexus Select Trust has a portfolio of 17 operating shopping centers in 14 major cities, covering an area of 9.8 million square feet.
This will be the third REIT sponsored by Blackstone.
She launched the first REIT Embassy Office Parks in India and then Mindspace Business Parks REIT.
REIT, a popular instrument in the world, was introduced in India a few years ago to attract investment in the real estate sector by monetizing rental-earning assets. It helps unlock the massive value of real estate assets and enables retail investor participation.
Currently, there are three REITs listed – Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust – on Indian stock exchanges, but all are leased office assets.
In its 9.8 million square foot portfolio of commercial real estate, Nexus Select Trust has also included Select Citywalk Mall in South Delhi.
There are about 3,000 stores spread across 17 malls while the number of brands is nearly 1,100.
Regarding the proposed retail REIT, Gagan Randev, Executive Director, India Sotheby’s International Realty, noted that the retail sector in India has shown remarkable resilience and steady growth following the coronavirus pandemic. COVID.
“a retail REIT, individual and institutional investors can benefit from the stability and long-term potential of the retail industry,” he said.
At the same time, Randev said investors will be able to spread their risk across a diversified portfolio of real estate.
Read all the latest business news, tax news and stock market updates here
(This story has not been edited by News18 staff and is published from a syndicated news agency feed)