Nexus Select Trust, backed by investment powerhouse Blackstone, is ramping up its mall portfolio expansion across India. With a focus on boosting its geographic reach and market presence, the trust aims to annually incorporate around 1 to 1.5 million square feet of leasable space.
In its latest move, the trust acquired three malls in Hyderabad, collectively spanning 1 million square feet. This strategic addition reinforces Nexus’s stronghold in regions where it already operates, marking a significant step towards market dominance. Moreover, this acquisition strategy isn’t limited to familiar territories; Nexus is also eyeing new markets to broaden its footprint.
Presently, Nexus Select Trust oversees a varied portfolio of 17 malls, covering approximately 10 million square feet across 14 cities. This diverse spread includes not only major urban hubs but also up-and-coming areas like Bhubaneswar and Mangalore, where Nexus-managed malls have shown promising performance. By acquiring malls and optimizing their value through careful tenant selection and management, the trust has demonstrated an effective model for sustainable growth and financial stability.
In the fiscal year 2024, Nexus Select recorded a net operating income of ₹1,760 crore, with a notable 13% surge in tenant sales amounting to ₹12,000 crore. Looking ahead to FY25, the trust anticipates a 9% increase in net operating income and plans to boost investor payouts by 9-10%. This positive outlook stems from robust demand from both domestic and international retailers, with brands like Zara and H&M expanding their presence within Nexus’s malls, including new formats such as Zara Home and H&M Home.
This strategic acquisition aligns with broader trends in real estate investment, where trusts like Nexus Select are prioritizing high-quality retail spaces to deliver consistent and growing returns to stakeholders. Nexus’s ability to adapt its portfolio to evolving market dynamics and consumer preferences underscores its resilient and forward-looking management approach.