Nexus Select Trust Acquires Vega City Mall for INR 913 Crore

Bengaluru:

Nexus Select Trust, backed by Blackstone Group, has expanded its Bengaluru retail portfolio with the acquisition of Vega City Mall, a 0.5-million sq. ft. Grade-A retail property in South Bengaluru. The deal, valued at ₹913 crore, marks the fourth acquisition by India’s only retail-focused REIT in the Karnataka capital, making it the largest retail platform in the city by the number of malls.

As part of the transaction, ₹43 crore has been allocated for planned capital expenditure, which includes investments in renewable energy and closing costs.

Acquisition Fully Financed Through Debt

The deal has been entirely financed through debt, utilizing listed non-convertible debentures (NCDs) issued at a 7.70% coupon rate in the December quarter. With this acquisition, Nexus Select Trust’s loan-to-value ratio now stands at 17%.

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Strategic Acquisition Aims at Maximizing Returns

Nexus Select Trust’s Executive Director & CEO, Dalip Sehgal, noted that the acquisition was value accretive, emphasizing that the asset was acquired at a 10% discount to independent valuation. He further indicated that the deal aligned with the company’s broader strategy of maximizing total returns for unitholders.

He also highlighted that, given Nexus Select’s strong existing presence in Bengaluru, the acquisition was expected to create operational synergies in areas such as leasing, marketing, and mall operations.

Boosting Cash Flow and Strengthening Retail Footprint

With a stabilized retail net operating income (NOI) of ₹78 crore, the acquisition is projected to increase the REIT’s net distributable cash flow by ₹20 crore, even after servicing the debt.

At present, Vega City Mall is 96% leased to a diverse mix of international and domestic brands, further reinforcing Nexus Select Trust’s position in the Bengaluru retail market.

News Disclaimer: This article is for informational purposes only and does not constitute investment advice. Financial details are based on publicly available sources, and readers are advised to conduct independent research before making any financial decisions.

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