In a major move to bolster its footprint in eastern India, Nexus Select Trust, a real estate investment trust (REIT) backed by the global investment giant Blackstone, is engaged in advanced takeover discussions for three prominent shopping malls. The potential acquisitions, with a combined estimated cost of ₹2,000 to ₹2,200 crore, are part of the trust's aggressive expansion strategy in the region.
Strategic Expansion in the Eastern Corridor
Nexus Select Trust, which manages assets for Blackstone—a firm overseeing a staggering $1 trillion in assets globally—currently operates the 400,000 sq ft Nexus Esplanade in Bhubaneswar in the east. The new acquisitions aim to significantly strengthen its portfolio. According to Jayen Naik, President (Operations) at Nexus Select Malls, due diligence is actively underway for the three properties.
"We are in the process of strengthening our presence in the east. Due diligence is underway for three properties. We hope to close a couple of them in three to four weeks," Naik stated. He further revealed that if all deals are finalized, they would add approximately 1.1 million sq ft of gross leasable area (GLA) to the trust's existing assets in the east.
Identifying the Target Malls
While neither Nexus Select nor its transaction advisor, Anarock, have officially confirmed the identities, market sources have named the three malls under consideration. The properties are reportedly:
- Diamond Plaza in Dum Dum, Kolkata, owned by the Kajaria-led Diamond group.
- Vega Circle Mall in Siliguri, owned by the Beghraj and Mittal groups.
- City Centre Patna in Patna, owned by the Ambuja Neotia group.
This strategic push follows Blackstone's earlier acquisition of Kolkata's South City Mall, which boasts an 800,000 sq ft GLA, along with two non-mall properties in Dubai and Sri Lanka as part of a larger ₹3,250 crore deal.
Vision for a Pan-India Mall Empire
Nexus Select Trust currently owns and operates a portfolio of 19 malls across India, with a distribution of five in the north, four in the west, nine in the south, and one in the east. The company's CEO, Dalip Sehgal, has articulated an ambitious goal to expand this portfolio to at least 30 malls by the year 2030.
Outlining the acquisition criteria, Jayen Naik added, "We are looking at all malls with a GLA of 400,000 to 450,000 sq ft and single ownership. There are around 100 grade-A malls in India with occupancy of over 80-85%. We own 20% of them already. The remaining 10% will be from these properties." This statement underscores a focused strategy to consolidate high-quality, income-generating retail assets under single management, aiming to capture a dominant share of India's top-tier mall market.
The potential acquisition of these three eastern malls marks a significant step in that direction, promising to reshape the retail landscape in key cities like Kolkata, Siliguri, and Patna while solidifying Nexus Select Trust's position as a leading force in Indian retail real estate.
