Nexus Malls, the retail platform of US-based asset manager Blackstone Group, has recently seen a strong jump in occupancy, footfall and sales across its shopping malls, exceeding pre-Covid levels of 2019, and is actively expanding its existing is looking for. Portfolio of 17 shopping malls.
A top executive said the company is eyeing a bunch of standalone shopping centers as well as malls, which will be upgraded and operational, as a possible acquisition.
Nexus Mall, the country’s largest retail platform, has approximately 10 million square feet of Grade A shopping centers in 13 cities. It made its first acquisition in 2015, and owns the retail assets of Blackstone, which is also the largest commercial office space owner in the country. Once Blackstone has acquired a shopping mall, it is brought under Nexus to operate.
“Consumption has been strong in April and May and currently we have recovered over 130% sales and over 100% footfall at portfolio level as compared to 2019. Cinema has been a big driver and has seen a recovery of 160% compared to pre-Covid. “Led by the food and beverage business as well as big releases in recent months,” said Dalip Sehgal, CEO of Nexus Malls.
He said occupancy levels at its malls, which stood at 92-93% leased in 2019 and were slightly lost during the pandemic, are currently at around 95% leased across the portfolio.
Malls in Bangalore have fared better. Compared to the pre-covid times, Santiniketan Mall has seen a sales recovery of 200%, while Koramangala has seen a sales recovery of 170%.
The firm aims to add more shopping malls to its portfolio through the acquisition made by Blackstone. Sehgal said it is looking at acquisitions, which include brownfield or operating assets that will help expand the portfolio across geographies and sizes.
“We are well represented geographically and we want to live in cities where we do not exist. When we want to acquire new properties, it would be prudent to acquire large malls of at least half a million square feet. The new malls coming up today are also the size of a million square feet or more. The demand for the top three retailers is very strong and they want to add anything between 500-1,000 stores in the next few years,” Sehgal said.
Nexus Malls on Wednesday said it has consolidated 17 of its retail properties under a new brand identity. The consolidation into one name, Nexus Malls, comes after Prestige Group’s multiple acquisitions in 2021, including eight shopping centers. The company has started the rebranding of its retail properties from South India in May 2022.
Forum Vijaya Mall in Chennai is the eighth and last mall in the Prestige retail portfolio to enter the Nexus fold in March. It has so far invested about 100 crore to upgrade and market Prestige Retail Assets.
Offline stores have made a strong comeback as many malls see huge crowds not only for shopping, but also for food and entertainment including cinema. After 12-18 months, mall owners and operators are also increasing the rents, which are in line with or even a notch above the pre-Covid rates.