Nexus Select Trust, a REIT backed by rent-yielding retail assets, is set to acquire Bengaluru's Vega City Mall for INR 877 crore. The acquisition includes the 0.45 million sq ft mall and the land, currently owned by A S Muniswamy Raju HUF, leased to Blue Horizon Hotels. The deal, executed through Vijaya Productions Pvt Ltd, awaits transaction documents and closing conditions. Nexus Select Trust, which manages 17 shopping malls across 14 cities with a gross leasable area of 9.9 million sq ft, aims to strengthen its presence in Bengaluru and capitalize on operational synergies. This move highlights the trust's commitment to growth in India's retail sector.
Nexus Select Trust, a real estate investment trust (REIT) supported by rent-yielding retail assets, is set to acquire a shopping mall in Bengaluru for a total of 877 crore INR. As stated in the recent regulatory filing, the Board of Directors of Nexus Select Mall Management Pvt Ltd, which manages Nexus Select Trust, has given its approval for the acquisition of Vega City Mall in Bengaluru.
The asset includes a fully operational mall with a total area of 0.45 million sq ft, sourced from Blue Horizon Hotels, along with the land on which the mall is built. This land is currently owned by A S Muniswamy Raju HUF. The overall purchase consideration will not exceed 877 crore INR or will be determined based on a mutually agreed amount by the parties involved in the transaction.
The acquisition by Nexus Select Trust will be carried out through its special purpose vehicle, Vijaya Productions Pvt Ltd. The deal is contingent upon the execution of transaction documents and the fulfillment of customary and commercially agreed closing conditions. Vijaya Productions Pvt Ltd will provide cash consideration for the acquisition of both the mall and the land. This deal is anticipated to conclude in the coming week. The land, which is currently owned by A S Muniswamy Raju HUF, has been leased to Blue Horizon Hotels Pvt Ltd under a leasing arrangement. The filing indicated that with this proposed acquisition, Nexus Select Trust aims to consolidate its presence in Bengaluru and capitalise on potential operational synergies.
Nexus Select Trust's portfolio includes 17 shopping malls with a gross leasable area of 9.9 million sq ft, spread across 14 cities in India, along with two complementary hotel assets featuring 354 keys and three office assets boasting a gross leasable area of 1.3 million sq ft.Its retail real estate assets host a tenant base of over 1,000 domestic and international brands, spanning approximately 3,000 stores.
The acquisition of Vega City Mall marks a significant step for Nexus Select Trust as it seeks to enhance its footprint in Bengaluru's retail market. This strategic move, backed by its diverse portfolio, underscores the trust's commitment to growth and operational synergies. As it continues to expand its presence across India, Nexus Select Trust aims to leverage its extensive tenant base to drive future success in the retail sector.
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