Nexus Select Trust Reit initial public offering opens on May 9

Global private equity major Blackstone Group-backed Nexus Select Trust Reit (real estate investment trust) will launch its initial public offering (IPO) on May 9, 2023. The subscription for the IPO will close on May 11.  The price band for the offer has been fixed at Rs 95 per unit to Rs 100 per unit.  The company had filed the offer document with the Stock and Exchange Board of India (Sebi) and stock exchanges on April 28, 2023.

While the bidding for the anchor investor will start on May 8, the company stock will start trading on domestic exchanges on May 16.  Wynford Investments is the sponsor of the Reit and Nexus Select Mall Management is the manager for the IPO. Axis Trustee Services is the trustee of Nexus Select Trust.

The IPO comprises a fresh issuance of Rs 1,400 crore and an offer for sale of units by the selling unitholders of Rs 1,800 crore. The IPO has a value of Rs 3,200 crore at the maximum price band of Rs 100.

The lead managers to the offer include BofA Securities, Axis Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), IIFL Securities, JM Financial, JP Morgan India, Kotak Mahindra Capital, Morgan Stanley India and SBI Capital Markets.

Commenting on the development, Blackstone chairman of Asia-Pacific, and head of real estate-Asia Chris Heady said: “This reaffirms Blackstone’s commitment to India, where we have built a strong presence for more than 15 years and participated in the launch of its first two Reits.”  “Nexus Select Trust is well-positioned to capitalise on India’s unique consumption tailwinds. We are excited to be at the forefront of India’s retail journey,” added Nexus Select Mall Management CEO Dalip Sehgal.

Nexus Select Trust owns India’s portfolio of assets comprising 17 Grade-A urban consumption centres with a total leasable area of 9.2 million square foot (msf), two complementary hotel assets and three office assets as of December 31, 2022. Its portfolio has a tenant base of 1,044 domestic and international brands with 2,893 stores as of December 31, 2022. Its assets are located across 14 leading cities in India, including Delhi, Navi Mumbai, Bangalore, Pune, Hyderabad and Chennai.