Blackstone-backed Nexus Select acquires Vega City mall in Bengaluru for 913 cr
Nexus Select Trust has acquired a nearly 0.5 million sq ft Grade A retail property Vega City mall in affluent south Bengaluru locality for a total enterprise value of Rs 913 crore. This includes purchase consideration of nearly Rs 870 crore and balance towards planned capex including renewables and closing costs.
This is the fourth acquisition made by India’s first and only retail-focused Real Estate Investment Trust (REIT) in Bengaluru making it the largest retail platform by number of malls in the city.
The acquisition is financed completely with debt through listed Non-convertible Debentures (NCDs) issued at a coupon rate of 7.70% during the December quarter. Post-acquisition, the REIT’s loan-to-value ratio stands at 17%.
“The transaction is Net Asset Value (NAV) and Distribution Per Unit (DPU) accretive as we have acquired this high-quality asset at around 10% discount to the independent valuation. This acquisition aligns perfectly with our overall strategy to maximize total returns for our unitholders. With a strong balance sheet post-acquisition, we continue to be well-positioned to deliver further inorganic growth opportunities,” said Dalip Sehgal, Executive Director & CEO, Nexus Select Trust.
According to him, given Nexus’s existing strong presence in Bengaluru, this acquisition will result in synergies in leasing, operations, and marketing.
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