Nexus Select Trust Acquires Vega City Mall in Bengaluru for Rs 877 Crore
The Nexus Select Trust, a real estate investment trust (REIT) focused on rent-yielding retail assets, has announced its plan to acquire Vega City Mall in Bengaluru for a whopping Rs 877 crore. This strategic move comes as the trust aims to strengthen its presence in the retail sector and capitalize on potential operational synergies. The acquisition has been approved by the Board of Directors of Nexus Select Mall Management Pvt Ltd, the manager to Nexus Select Trust.
The Deal Structure and Making of the Acquisition
According to regulatory filings, the Nexus Select Trust will acquire the Vega City Mall along with the land on which it is currently constructed. The mall has a total area of 0.45 million sq ft and is owned by A.S. Muniswamy Raju HUF. The acquisition will be made through the trust’s special purpose vehicle, Vijaya Productions Pvt Ltd. The deal is subject to the execution of transaction documents and the fulfillment of customary and commercially agreed closing conditions.
Expansion and Consolidation in Bengaluru
With the acquisition of Vega City Mall, Nexus Select Trust aims to consolidate its presence in Bengaluru. The trust has recognized the potential for embedded upsides and synergies in the city’s retail market. This move reflects its confidence in the growth and profitability of retail real estate in this region.
About Nexus Select Trust and Its Portfolio
Currently, Nexus Select Trust’s portfolio consists of 17 shopping malls spread across 14 cities in India. These malls have a combined gross leasable area of 9.9 million sq ft. In addition to the shopping malls, the trust also holds two complementary hotel assets with 354 keys and three office assets with a gross leasable area of 1.3 million sq ft. The retail real estate assets of the trust house more than 1,000 domestic and international brands, spanning around 3,000 stores.
The Growth Potential of Nexus Select Trust
By acquiring Vega City Mall, Nexus Select Trust is strategically expanding its foothold in the retail sector, allowing it to tap into the diverse range of domestic and international brands operating in the mall. With a well-diversified and attractive portfolio, the trust is poised for further growth and revenue generation. This acquisition demonstrates its commitment to creating value for its investors and stakeholders.
Conclusion
Nexus Select Trust’s acquisition of Vega City Mall in Bengaluru for Rs 877 crore marks a significant milestone in its growth strategy. This move not only strengthens its presence in the retail sector but also showcases the trust’s confidence in the potential of the Bengaluru market. With a robust portfolio across multiple cities in India, Nexus Select Trust is well-positioned to capitalize on the vast growth opportunities in the retail real estate industry.
