Blackstone-backed Nexus Select files for India's first retail REIT IPO

 02 May 2023, Mumbai 

Nexus Select, a real estate investment trust (REIT) that manages the retail assets of Blackstone, has filed for a ₹3,200 crore ($430 million) initial public offering (IPO) in India, making it the first retail REIT in the country.

With the largest portfolio of malls in India, the launch of the Nexus REIT comes at a time when shopping malls are bouncing back post-pandemic and contributing to the rise in consumption. Experts suggest that this move towards a retail REIT could redefine malls as an asset class and be the next big move in the sector.

The Indian retail sector has been steadily recovering post Covid, with malls reopening and footfalls increasing. As per Knight Frank Research, potential retail sales in malls in the top eight cities are estimated to grow at a compound annual growth rate (CAGR) of 29% from FY22 to FY28 and hit $39 billion by then.

The success of Embassy REIT and Mindspace REIT, both co-owned by Blackstone, has led to a surge of interest in REITs in India. The Indian REIT market could grow to $50 billion by 2025, as per industry estimates.

Nexus Malls, the retail arm of Nexus Select, has built the largest portfolio of malls in India in less than eight years, with 17 shopping centers spanning nearly 10 million sq ft across 14 cities.

The expansion of REITs in India is evident, with office space and retail on the rise, and warehouse and logistics could be the next in line for REITs in the country.

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