Nexus Select Trust REIT IPO offer at ₹3,200 crore

The offer size for the Blackstone-sponsored real estate investment trust, Nexus Select Trust’s initial public offer of units, has been fixed at ₹3,200 crore, according to the final offer document filed with the stock exchanges.

The offer size consists of a fresh issue of ₹1,400 crore and an offer for sale by its sponsors worth ₹1,800 crore.

Strong demand

Earlier the issue size had been estimated at ₹4,000 crore, with a higher amount being offered under the OFS portion. Sources indicated that the selling shareholders Blackstone and Select CityWalk promoter had decided to withhold and sell fewer units under OFS due to the strong demand in the malls and they see good value in holding on as consumption is surging across urban centres.

There will also be a placement to anchor investors, sources indicated. The offer will be open for subscription from May 9 to 11, the timeline of events showed. The listing is expected to be around May 19.

It had been reported by businessline last week that the REIT had obtained approval from Securities and Exchange Board of India to file the final document.

Nexus Select Trust is the first retail-focused REIT in the country and the portfolio of assets consist of 17 malls spread across 14 cities and 9.2 million square feet. There are also three offices and two hotels.

As on December 31, 2022, the malls had a committed occupancy of 96.2 percent and a total market value of ₹21,146.6 crore.

For the nine months to December 31, 2022, Nexus Select Trust reported a net profit of ₹257 crore on revenue of ₹1,463 crore of which mall rentals accounted for the bulk at ₹1,259 crore.

The amount raised via the fresh issue of units will be used to repay debt and acquire stake in some asset SPVs.