Nexus Select Trust’s ₹3,200 cr REIT IPO to open on May 9
Global investment firm Blackstone- backed Nexus Select Trust’s initial public offer will open on May 9 to raise up to ₹3,200 crore. It will be available for subscription till May 11.
This will be India’s first REIT (Real Estate Investment Trust) IPO. At present, there are three listed REITs on stock exchanges but all backed by office assets.
Nexus Select Trust has filed its offer document with market regulator SEBI for its IPO.
The IPO’s total size of the public issue is ₹3,200 crore, which consists of ₹1,400 crore and offer for sale (OFS) of up to ₹1,800 crore.
Earlier, the company had planned to raise up to ₹4,000 crore from its proposed REIT public issue.
Nexus Select Trust has a portfolio of 17 operational shopping malls across 14 major cities, covering a 9.8 million square feet area. This will be the third REIT sponsored by Blackstone. Nexus Select Trust has also included Select Citywalk Mall in south Delhi.
It launched India’s first REIT Embassy Office Parks and then Mindspace Business Parks REIT.
REIT, a popular instrument globally, was introduced in India a few years ago to attract investment in the real estate sector by monetising rent-yielding assets. It helps unlock the massive value of real estate assets and enables the participation of retail investors.
At present, there are three listed REITs — Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust — on Indian stock exchanges, but all of these are leased office assets.
There are around 3,000 stores across 17 shopping malls while the number of brands is nearly 1,100.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.