Nexus REIT Eyes Acquisition of Chennai's Iconic Marina Mall to Expand Portfolio

Bengaluru | Mumbai:

Strategic Acquisition in Chennai

Nexus Select Trust, a prominent real estate investment trust (REIT), is in discussions to acquire The Marina Mall in Chennai, which boasts nearly 600,000 square feet of retail space. Sources with direct knowledge of the development disclosed this significant move as part of Nexus Select Trust's expansion strategy.

Marina Mall - Prime Location and Development

Located on Old Mahabalipuram Road in Chennai, The Marina Mall was developed by OMR Mall Developers (OMDR), a special purpose vehicle established in 2008. This development involved partners including the land parcel owners and Allied Investments & Housing, which served as the main project contractor. Aslam Packeer Mohamed, managing director of OMDR, indicated that discussions are ongoing but no financial figures have been agreed upon yet.

Nexus Select Trust's Expansion Plans

Nexus Select Trust is focused on doubling its asset portfolio to 20 million square feet over the next five years through an acquisition-led growth strategy. This initiative aligns with the broader surge in India’s retail sector, which has seen a sharp rebound in consumption post-pandemic. Recent data from the Shopping Centres Association of India (SCAI) highlighted a 11.5% increase in mall consumption, a 6.7% rise in occupancy, and a 9.6% growth in average rental rates last fiscal year.

The Marina Mall’s Features

The Marina Mall, inaugurated in February 2019, offers an extensive shopping and entertainment experience across six floors, with three additional basement parking levels. It hosts over 150 brands, more than 25 food establishments, a hypermarket, an amusement center, kids' zone, entertainment zones, and an eight-screen digital multiplex. Notably, it also features South India's largest inflatable park, enhancing its appeal as a premier destination.

Robust Retail Market Growth

The retail market in India is thriving, with over ₹4 lakh crore in revenue generated by malls in the last two years. The next two years are expected to see the opening of around 50 new malls, adding to the 31 that have opened recently. This growth underscores the strong demand for shopping experiences driven by evolving consumer preferences and lifestyle aspirations.

Nexus Select Trust’s Strategic Moves

Nexus Select Trust’s potential acquisition of The Marina Mall represents a strategic effort to capitalize on the booming retail market. As the REIT looks to expand its footprint, such acquisitions are crucial in enhancing its portfolio and meeting the increasing consumer demand for sophisticated shopping destinations.