Nexus Select Trust REIT IPO

Nexus Select Trust is India’s leading real estate investment trust with high-quality assets which serve as essential consumption infrastructure for India’s growing middle class . The REIT comprises of 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.

The Nexus Select Trust portfolio is located in 14 cities — Ahmedabad, Amritsar, Bengaluru, Bhubaneswar, Chandigarh, Chennai, Delhi, Hyderabad, Indore, Mangaluru, Mysuru, Navi Mumbai, Pune, and Udaipur. These cities contribute to 30.0% of discretionary retail spend in India, according to its red herring prospectus.

The REIT has a high quality and diversified tenant base of 1,044 retail tenants across 2,893 stores as of December 31, 2022, comprising a mix of leading international brands including Zara, ALDO, Superdry, and Marks & Spencer, and Indian brands including Croma, Shoppers Stop, PVR Cinemas and Forest Essentials. About 47.3% of the gross rentals in the month ended December 31, 2022 were from international brands and approximately 52.7% were from domestic Indian brands.

The company has consistently maintained over 90% same-store committed occupancy between January 1, 2018 and June 30, 2022, with a same-store committed occupancy of 93.9% as of June 30, 2022. It has also achieved 11% CAGR in tenant sales between FY18 to FY20 through strong marketing and consumer outreach initiatives.