Nexus Select Trust's Rs 3,200 crore REIT initial public offer (IPO) will begin on May 9 and will be open for subscription until May 11.
This is India's first REIT retail asset offering. There are currently three listed REITs on stock exchanges, but they are all backed by office assets.
The IPO consists of a Rs 1,400 crore new issue and an offer for sale (OFS) of up to Rs 1,800 crore. The amount has been cut from an earlier proposal of Rs 4,000 crore.
Nexus Select Trust is India's largest mall platform, consisting of 17 high-quality assets strategically located in dense residential catchments in 14 major cities including Delhi (Select Citywalk), Navi Mumbai (Nexus Seawoods), Bengaluru (Nexus Koramangala), Chandigarh (Nexus Elante), and Ahmedabad (Nexus Ahmedabad One).
The portfolio is 96 per cent leased, with over 1,000 national and international tenants including Apple. Zara, H&M, Uniqlo, Sephora, Superdry, Lifestyle, Shoppers Stop, Starbucks, and McDonald's are among the retailers with over 3,000 locations.
This will be Blackstone's third REIT sponsorship. It introduced India's first REIT, Embassy Office Parks, followed by Mindspace Business Parks REIT.
The planned IPO price range is likely to be revealed in the first week of May, followed by the IPO in the second week of May.
Morgan Stanley, JP Morgan, Kotak Mahindra Capital, Axis Capital, and BoA ML are the planned public issue's bankers.
The real estate investment trust (REIT), a prominent global institution, was introduced in India a few years ago to encourage investment in the real estate sector by monetising rent-yielding properties. It contributes to the tremendous value of real estate assets and allows individual investors to participate.
On Indian stock exchanges, there are currently three listed REITs: Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust, but all of these are leased office assets.