Nexus Files For Public Offer, Marking India’s First REIT (Real Estate Trust Fund) IPO

  New Delhi:

World funding agency Blackstone-sponsored Nexus Choose Belief filed the draft paper with market regulator SEBI on Thursday to launch India’s first public problem of retail REIT to lift round USD 500 million, sources mentioned.

Nexus Choose Belief has a portfolio of 17 operational buying malls throughout 14 main cities, protecting about 10 million sq. toes space valued round USD 3 billion.

As per the sources, Nexus Choose Belief has filed the Draft Crimson Herring Prospectus (DRHP) with the Securities and Change Board of India (SEBI) and is trying to hit the capital market with India’s first retail REIT (Actual Property Funding Belief) public problem within the first half of 2023 calendar yr.

The scale of the preliminary public provide (IPO) of Nexus Choose Belief REIT shall be round USD 500 million, they added.   This would be the third REIT sponsored by the Blackstone. It had earlier launched India’s first REIT — Embassy Workplace Parks REIT– after which Mindspace Enterprise Parks REIT.

The REIT, a well-liked instrument globally, was launched in India just a few years in the past to draw funding in the actual property sector by monetising rent-yielding belongings. It helps unlock the large worth of actual property belongings and allow participation of retail traders.

At current, there are three listed REITs — Embassy Workplace Parks REIT, Mindspace Enterprise Parks REIT and Brookfield India Actual Property Belief — on Indian inventory exchanges however all these are of leased workplace belongings.   Nexus Choose Belief would be the first REIT with rent-yielding retail actual property belongings.

In its portfolio of 10 million sq. toes of retail actual property, Nexus Choose Belief has additionally included Choose Citywalk mall in south Delhi. There are round 3,000 shops in its buying malls whereas the variety of manufacturers are roughly 1,000.

The sources mentioned Blackstone may be very bullish on the expansion story of India’s retail sector, which have bounced again sharply submit the second wave of the Covid pandemic.

“The elemental of India’s retail enterprise may be very robust. Individuals are spending cash and watching films,” a supply mentioned.   In contrast to workplace phase, there should not many gamers in buying malls enterprise and in addition the provision of Grade A malls can also be restricted, the sources mentioned.

On operational entrance, the occupancy stage within the malls at present stands at 94 per cent with annual footfall of over 130 million, they mentioned.

The gross sales in its malls throughout the April-June quarter have been 24 per cent greater than the pre-Covid stage.

Nexus Choose Belief has completed leasing of round 3.5 million sq. toes over the past three years and three months. Its senior administration workforce consisting of 9 CXOs (with 20 years common expertise) led by Dalip Sehgal (former government director of Unilever India) as CEO is supported by over 500 staff.

The board of administrators is extremely diversified and skilled. The important thing board members are Michael Holland (ex-CEO of the Embassy REIT), Arjun Sharma (Chairman and Director of the Choose Group), Jayesh Service provider (ex-CFO Asian Paints), Sadashiv Rao (Former Director of IDFC) and Tuhin Parikh (Head of BX India Actual Property).

Blackstone has an actual property portfolio of 85 belongings totalling 150 million sq. toes throughout workplace, retail and logistics segments.

In workplace, Blackstone is collectively one in every of India’s largest workplace landlords (41 belongings totalling 101 million sq. toes), whereas in logistics and industrial house, the Blackstone is one in every of India’s largest warehousing landlords (21 belongings totalling 38 million sq. toes).

Blackstone has just lately arrange a fully-owned platform ‘Lumina’ to put money into information centres throughout Asia, with preliminary concentrate on India.

India’s first REIT of Rs 4,750 crore problem dimension was listed in April 2019 by Embassy Workplace Parks, sponsored by Blackstone and realty agency Embassy Group.

In August 2020, Ok Raheja and Blackstone-sponsored Mindspace Enterprise Parks launched the nation’s second REIT to lift Rs 4,500 crore. World funding agency Brookfield has listed the nation’s third REIT after elevating Rs 3,800 crore by means of an IPO.