Nexus Select Trust Invests ₹913 Crore in Vega City Mall to Grow Retail Portfolio

Nexus Select Trust, India’s first retail real estate investment trust (REIT), has acquired Vega City Mall in Bengaluru for ₹913 crore. The company announced the acquisition through a regulatory filing, marking a significant expansion of its retail portfolio. The total enterprise value of ₹913 crore includes a purchase consideration of ₹869.75 crore, with the remaining amount allocated for planned capital expenditure, including renewable energy initiatives and closing costs.

With this acquisition, Nexus Select Trust now owns four shopping malls in Bengaluru, covering a total area of 1.7 million square feet. Across Karnataka, the company’s retail portfolio has expanded to six malls with a combined total of 2.7 million square feet. Nexus has outlined plans to double its mall portfolio over the next five years, further strengthening its position in the retail real estate sector.

The trust currently manages 18 Grade-A shopping malls across 14 cities in India, covering a total area of 10.4 million square feet. In addition to retail spaces, the portfolio includes two hotel properties with a combined capacity of 354 keys and three office assets with a gross leasable area of 1.3 million square feet. Nexus Select Trust has been focusing on acquiring high-quality retail assets in key urban locations to expand its presence in the Indian market.

Vega City Mall, located in South Bengaluru, is a well-established shopping center with a high occupancy rate. As of now, the mall is 96% leased to a mix of international and domestic brands. The property’s location in an affluent neighborhood makes it a strategic addition to Nexus Select Trust’s portfolio. The company expects this acquisition to contribute to its long-term growth by enhancing its revenue streams and strengthening its position in the retail sector.

Dalip Sehgal, Executive Director and Chief Executive Officer at Nexus Select Trust, highlighted the importance of this acquisition in the company’s growth strategy. He stated that the purchase of Vega City Mall aligns with the trust’s objective of acquiring high-quality retail properties in key urban centers. He also emphasized that this move reflects the company’s commitment to expanding its portfolio through strategic investments.

Blackstone, a global investment firm, is a key stakeholder in Nexus Select Trust. In August 2024, Blackstone sold 33 crore units in the REIT through a block deal for approximately ₹4,550 crore as part of its strategy to monetize real estate assets. Despite this sale, Blackstone continues to hold a 43% stake in Nexus Select Trust.

The acquisition of Vega City Mall aligns with the broader trend of increasing institutional investments in India’s retail real estate sector. Over the past few years, investors have shown growing interest in shopping malls and mixed-use developments, recognizing their potential for stable returns. The retail sector in India has been evolving, with strong demand for high-quality shopping destinations in major cities. Nexus Select Trust’s continued expansion reflects confidence in the long-term growth prospects of organized retail spaces.

The company’s plan to double its mall portfolio over the next five years suggests an aggressive growth strategy. With increasing urbanization and changing consumer preferences, well-managed retail assets continue to attract interest from institutional investors. The acquisition of Vega City Mall marks another step in Nexus Select Trust’s efforts to consolidate its position as a leading retail REIT in India.