Nexus Select Trust REIT makes a muted debut on D-st, lists at 3% premium

Nexus Select Trust REIT made a muted debut at Dalal Street as the units of real estate investment trust (REIT) were listed at Rs 103 on the National Stock Exchange (NSE). The retail assets-led REIT kicked off its maiden trading session at Rs 102.27 on BSE, a premium of 2.27 per cent, against the issue price of Rs 100 apiece.

Blackstone-backed Nexus Select Trust is India's leading consumption centre platform with 17 Grade-A best-in-class Urban Consumption Centres spread across 14 cities with a total leasable area of 9.8 million square feet (msf), two complementary hotel assets (354 keys), and three office assets of 1.3 msf as of December 31, 2022.

Nexus Select Trust's primary offering was open for subscription between May 9-11.  The owner of India's largest mall assets is eyed to raise Rs 3,200 by selling its 32 crore units in the price band of Rs 95-100 apiece. Nexus Select is India’s maiden retail assets-led Real Estate Investment Trust (REIT).

Nexus Select Trust REIT's IPO has received a strong response during the three-day bidding process for the issue, which was overall subscribed 5.45 times. The portion of qualified institutional bidders (QIBs) was subscribed 4.81 times, while the allocations for non-institutional or other investors was booked 6.23 times.

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The net proceeds from the fresh issue will be utilized towards partial or full repayment or prepayment and redemption of certain financial indebtedness of the Asset SPVs and the investment entity; acquisition of stake and redemption of debt securities in certain Asset SPVs; and general purposes, the company said in RHP.

Nexus Select Trust reported a net loss of Rs 10.95 crore for the year ended on March 31, 2022 with a total revenue of Rs 1,398.52 crore, which was a net loss of Rs 199.11 crore and a revenue of Rs 1,047.97 crore in the year ago period. However, it clocked a net profit at Rs 257.02 crore with a revenue of Rs 1,498.35 crore for the period ended on December 31, 2022.

Axis Trustee Services is the Trustee for the Nexus Select Trust, while Wynford Investments, a portfolio company of Blackstone real estate funds, is the sponsor for it, while Nexus Select Mall Management is the manager.