Nexus Select Trust lists at 3% premium on expected lines

Nexus Select Trust was listed with a decent premium of 3 percent over the issue price of Rs 100 per unit on the National Stock Exchange on May 19. This is the fourth REIT listing on the bourses since 2019.

The opening price on the NSE was Rs 103, which was on the expected lines. On BSE it debuted at Rs 102.27, up 2.27 percent. Analysts had largely expected a 3-5 percent listing premium for the REIT.

The initial public offering of India’s leading consumption center platform with 17 best-in-class urban consumption centers across 14 cities had received a healthy response from investors last week subscribing 5.45 times as the portion set aside for institutional investors was subscribed 4.81 times and that of non-institutional investors 6.23 times during May 9-11.

Nexus Select Trust, India's first retail assets-focused REIT sponsored by global investment giant Blackstone, has raised Rs 3,200 crore via public issue, of which fresh issue proceeds of Rs 1,400 crore will be utilised for repaying debts of the asset SPVs and the investment entity; acquisition of stake and redemption of debt securities in certain asset SPVs; and general corporate purposes. The rest of Rs 1,800 crore was an offer for sale issued by unitholders.

The price band for the offer was Rs 95-100 per unit.

Nexus has a well-diversified tenant base of 1,044 domestic and international brands with 2,893 stores as of December 2022 and is also well-diversified across cities with no single asset and tenant contributing more than 18.3 percent and 2.8 percent of total gross rentals for December 2022.

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