India’s first retail-focused REIT is all set to hit the IPO market soon! Nexus Select Trust, which has India’s largest portfolio of consumption centres, will launch its initial public offering (IPO) on 9th May. The total size of REIT IPO is 3,200 crore, which includes fresh issue and offer for sale (OFS). The company is sponsored by Blackstone, a leading alternative asset manager. With a strong presence of over 15 years, Nexus will be the first REIT in its segment to be listed on the stock exchanges.
On the IPO, Dalip Sehgal, Chief Executive Officer, Nexus Select Mall Management Pvt Ltd, said: “Nexus Select Trust is India’s largest mall platform and is well positioned to capitalize on India’s unique consumption tailwinds. We are excited to be at the forefront of India’s retail journey.”
Nexus is backed by American alternative investment management company Blackstone.
Chris Headey, Chairman, Asia Pacific and Head of Real Estate Asia, Blackstone, said: “We are thrilled to launch Nexus Select Trust, India’s first retail-focused REIT. It reaffirms Blackstone’s commitment to India, where we have built a strong presence for over 15 years and have participated in the launch of two REITs prior to this.”
Here are 10 key highlights of the Nexus REIT IPO:
1. The IPO will open on May 9, 2023 and close on May 11, 2023. The bidding for anchor investors will be allowed on May 8.
2. Total IPO size 3,200 crores, There will be a fresh issue of 1,400 crore units, and the remaining There will be an offer for sale (OFS) of 1,800 crore units.
3. The lower and upper price bands of the IPO have been fixed 95 per unit and 100 per unit.
4. Bidding can be done for a minimum of 150 units and thereafter in multiples of 150 units by bidders other than anchor investors.
5. Wynford Investments, a portfolio company of Blackstone Funds, is the sponsor of the Nexus Select Trust. While Nexus Select is the mall management manager. Axis Trustee Services is the Trustee in the IPO.
6. The Book-running Lead Managers of the IPO are — BofA Securities India, Axis Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), IIFL Securities, JM Financial, JP Morgan India, Kotak Mahindra Capital, Morgan Stanley India Company, and SBI Capital Markets.
7. Nexus is expected to be the first publicly listed consumption center REIT in India to list units on stock exchanges.
8. Nexus consists of 17 best-in-class Grade A urban consumption centres, two complementary hotel assets and three office assets. The REIT’s portfolio has a tenant base of 1,044 domestic and international brands with 2,893 stores as of December 31, 2022, and is well-diversified across cities, with no single property and tenant accounting for more than 18.3% and its total gross Contributes 2.8% of the rent. the month of December 31, 2022 respectively.
9. Nexus properties strategically located across 14 major cities in India account for 30% of India’s total discretionary retail spending in FY20 and have an average population CAGR of 226 bps over the national average from FY2011 to FY21 is more.
10. Nexus believes that it has invested in the highest quality properties in prime in-fills such as Delhi, Navi Mumbai, Bengaluru, Pune, Hyderabad and Chennai. It added that these cities have limited organized retail stock and continue to witness strong demand fundamentals in the form of domestic and international retailers, even as future supply of retail space is expected to remain constrained.
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