Nexus Select Trust has completed the acquisition of Vega City mall in South Bengaluru, the company announced today. The transaction makes Nexus the largest retail platform in Bengaluru by number of malls, with this being its fourth asset in the city.
The shares of Nexus Select Trust were trading at ₹133.80 up by ₹1.62 or 1.23 per cent on the NSE today at 1.45 pm.
The Grade-A urban consumption centre was purchased at a 10 per cent discount to independent valuation and is expected to generate a stabilised Retail Net Operating Income of ₹78 crore. The acquisition is funded entirely through listed Non-convertible Debentures issued at 7.70 per cent in Q3 FY25, maintaining a post-acquisition loan-to-value ratio of 17 per cent.
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“This acquisition reaffirms the commitment to our business model and the promise we made at the time of listing to grow the portfolio through accretive acquisitions of high-quality assets,” said Dalip Sehgal, Executive Director and CEO at Nexus Select Trust.
The 96 per cent leased mall is located in an affluent neighborhood near an upcoming metro station and features a diverse mix of international and domestic brands. The transaction is expected to be net asset value (NAV) and distribution per unit (DPU) accretive, with an anticipated increment to Net Distributable Cash Flow of ₹20 crore after servicing debt.
With this addition, Nexus Select Trust now operates 18 Grade-A urban consumption centres across 14 Indian cities, totalling 10.3 million square feet of gross leasable area.