Nexus Select Trust Listed at 3% Higher Than Expected Line

Nexus Select Trust REIT goes public, with units debuting at a 3% premium to the IPO price.

Nexus Select Trust was listed on the National Stock Exchange on May 19 at a substantial premium of 3% to the issue price of Rs 100 per unit. This is the fourth REIT to list on an exchange since 2019.

NSE opened at Rs 103, in line with expectations. On the BSE, it debuted at Rs 102.27, up 2.27%. Analysts had generally expected a listing premium of 3-5% for the REIT.

India’s leading consumer centre platform with 17 premier urban consumer centres in 14 cities, its IPO received a positive response from investors last week with 5.45 times subscriptions and 4.81 times subscriptions reserved for institutional investors, while non-institutional investors 6.23 times on May 9-11.

Nexus Select Trust, India’s first retail asset-focused REIT sponsored by global investment giant Blackstone, has raised Rs 3,200 crore through a public offering, of which Rs 1,400 crore from the new issue will be used to repay assets, SPVs and investment entities’ debt; acquisition of equity interests in certain SPV assets and redemption of debt securities; and general corporate purposes. The remaining Rs 1,800 crore is an offer for sale by unitholders.

The quoted price range is Rs 95-100 per unit.

As of December 2022, Nexus has a diverse tenant base of 1,044 national and international brands with 2,893 stores, and is also very diverse across cities, with no single asset and tenant contributing 10% of total December 2022 rent. 18.3% and 2.8% above.

Embassy Office Parks, Mindspace Business Parks and Brookfield India Real Estate Trust are other real estate investment trusts (REITs) that have been listed in the market since 2019 and they are all in the commercial sector.

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