1.About Nexus Select Trust
Nexus select trust is owner of India’s leading high-quality shopping malls assets that serve as essential consumption infrastructure for India’s growing middle class. Nexus select trust expect to be the first publicly listed consumption centre REIT in India upon the listing of Units on the Stock Exchanges. Its Portfolio is well-positioned to benefit from the consumption tail winds of India’s growing middle class and rapid urbanization. Its Portfolio comprises 17 best-in-class Grade A urban shopping Malls with a total Leasable Area of 9.8 msf, two complementary hotel assets (354 keys) and three office assets (1.3 msf) as of June 30, 2022. Its assets are strategically located across 14 leading cities in India. Trust is well-positioned for strong organic growth through a combination of contractual rent escalations, increased tenant sales leading to higher Turnover Rentals and re-leasing at higher market rents.
2.Top Portfolio Assets
| Select Citywalk |
Nexus Westend |
Westend Icon offices |
| Nexus Elante |
Nexus Esplanade |
Vijaya office |
| Nexus Seawoods |
Nexus Amritsar |
Elante office |
| Nexus Ahmedabad One |
Nexus Shantiniketan |
Hyatt Regency Chandigarh |
| Nexus Hyderabad |
Nexus Whitefield |
Karnataka Solar Park |
| Nexus Koramangala |
Nexus Celebration |
Nexus Centre city |
| Nexus Vijaya |
Fiza by Nexus |
Nexus Indore |
3.Advantages of investing in REITs
1) Investment in real estate properties can be very capital intensive. However, shares of REITs are comparatively affordable, as investors can purchase few units at a time without worrying about large capital outflows.
2) REITs are suitable for small Investors too, as these eliminate direct dealing with property builders. Also, REITscome with lower liquidity risk as compared to direct property investment.
3) REITs are listed in stock exchanges. Hence all pertinent details can be checked online by investors beforemaking an investment.
4) REITs offer income to investors primarily through dividend. The dividend payment in most REITs is relatively assured. This is because the primary source of earning is through rental (lease) income.
5) REITs are regulated by SEBI, and therefore the chances of fraud are low.
4.Investment Rationale
1) Invest in an asset that has shopping malls, offices, hotels, and renewable power plants in its portfolio.
2) Investors are expected to get a combination of fixed and variable returns which are directly linked to high rental income growth and good hedge against inflation.
3) Trust major earnings are from consumption centers, which are directly linked with high Indian consumption growth. Consumption accounted for approximately 59.6% of India’s GDP in FY 22 and has grown at a 10.0%CAGR between CY14 and CY21.
4) Trust property is highly occupied by a diversified tenant base of renowned national and international brands.
5) Nexus Reits is backed by Blackstone and Blackstone invested trusts have given good returns in the past.
5.Blackstone Backed ReITs Past performance
| Name |
Listing Date |
IPO Price |
Quarterly Payout |
CMP
As on 02/05/2023 |
XIRR
(Based on Payout excluding
price appreciation) |
| EMBASSY OFFICE REIT |
Mar 18, 2019 |
300 |
89.34 |
329.95 |
6.49% |
| MINDSPACE BUSINESS REIT |
Jul 29, 2020 |
275 |
42.33 |
320.40 |
5.28% |
Nexus Select Trust REIT Registrar
KFin Technologies Limited
Phone:04067162222, 04079611000
Email: nexusselecttrust.ipo@kfintech.com
Website: https://karisma.kfintech.com/