Blackstone-backed real estate investment trust (REIT) Nexus Select Trust has approved the acquisition of a 100% stake in Galaxy Infra Creations Pvt Ltd (GICPL), the developer of a shopping mall and a Hyatt Regency hotel in Guwahati, in a deal with an enterprise value of Rs 1,600 crore ($167.6 million), according to a statement.
The board of Nexus Select Mall Management Pvt Ltd, the manager of Nexus Select Trust, approved the execution of the share purchase agreement on September 9.
Once completed, the acquisition will provide the listed retail-focussed REIT with approximately 516,000 square feet of gross leasable area of retail space, along with a 164-key Hyatt Regency hotel. Both properties are currently under construction on NH-27 in Guwahati.
The transaction will be financed through a combination of cash and unit swap. Following completion, Nexus Select Trust will own 100% of GICPL's equity share capital and assume full control of the company. The acquisition is expected to close within the next 18 months, as per the statement.
The transaction is in line with the trust's business objectives and marks the first step in its broader strategy to build a presence in the high-potential consumption markets of East and Northeast India. Guwahati has been identified as a strategic entry point into the region, the statement added.
India's first listed retail REIT, Nexus Select Trust owns and operates a portfolio of consumption-focussed retail assets across the country. The Guwahati acquisition represents a significant geographic expansion as the trust seeks to tap into India's emerging consumption centres.
In a recent interaction with VCCircle, Pratik Dantara, chief investor relations officer and head of strategy at Nexus Select Trust, highlighted the importance of emerging consumption centres in smaller cities and towns. He said the trust is planning to double its portfolio by increasing exposure to newer markets, including cities across East and Northeast India.
