Nexus Select Trust has completed the allotment of non-convertible debentures (NCDs) worth ₹700.00 crores through a resolution passed by its Borrowing Committee. The allotment was executed through the trust's manager, Nexus Select Mall Management Private Limited, following prior board approval.

NCD Allotment Details

The allotment comprises two distinct tranches under Series IV, both featuring listed, rated, secured, transferable, and redeemable rupee-denominated non-convertible debentures issued on a private placement basis.

Regulatory Framework and Approval Process

The NCD issuance falls under the broader approval framework established by the Board members. The original approval encompassed the issuance of listed, rated, secured, transferable, redeemable Non-Convertible Debentures for a principal aggregate amount of up to ₹700.00 crores in one or more transactions, series, or tranches in dematerialized form on a private placement basis.

The Borrowing Committee of Nexus Select Mall Management Private Limited, acting as manager to the trust, exercised its authority through resolution by circulation to approve the specific allotment parameters.

Listing and Documentation

Both tranches are proposed to be listed on BSE Limited, providing investors with secondary market liquidity options. The allotment follows the terms and conditions outlined in the Key Information Document, which serves as the primary reference document for investors.

The trust operates through its manager, Nexus Select Mall Management Private Limited, which is registered at Embassy 247, Unit No. 501, B Wing LBS Marg, Vikhroli (West), Mumbai City MH-400083, with CIN: U70109MH2021PTC363065.

Nexus Select Trust , India's leading real estate investment trust focused on consumption centers, has successfully completed a strategic expansion of its retail portfolio in Chandigarh. The trust has acquired approximately 60,000 sq. ft. of retail space at the Nexus Elante Complex for ₹253.7 crores, further solidifying its position in the northern Indian market.

Acquisition Details

The acquisition includes prime vacant retail space on the ground and first floors of a building adjacent to the Nexus Elante Mall. This strategic move is expected to enhance the mall's visibility, customer flow, and dwell time, potentially leading to increased value creation.

Financial Highlights

• Total Enterprise Value: ₹253.70 crores
• Purchase Consideration: ₹230.65 crores (8% discount to Independent Valuation Report for Retail usage)
• Additional Costs: The remaining amount covers stamp duty, registration charges, closing costs, and planned capital expenditure

Funding Structure

The acquisition was financed through a combination of:

• Commercial paper issuance: ₹202.00 crores at a 6.2% coupon rate
• Existing cash reserves: For the balance amount

Strategic Rationale

1. Market Leadership: The expansion strengthens Nexus Elante's market leadership in the Chandigarh Tricity area, particularly in the underserved premium and luxury retail segment.
2. Strong Performance History: The ground and first floors of Nexus Elante have shown robust performance with:
   • Nearly full occupancy for the past five years
   • 9% rental CAGR over seven years
3. High-Value Tenant Mix: The expansion targets high-value retail categories including luxury fashion, premium F&B, and high-end electronics.
4. Tenant Demand: The acquisition is driven by strong tenant demand, with a waitlist of over 30 prospective tenants.

Financial Performance

Based on the latest financial data, Nexus Select Trust has shown resilience and growth:

The trust's financial position remains strong, with total assets of ₹20,547.90 crores, representing a 2.17% increase year-over-year.

Future Outlook

Nexus Select Trust aims to replicate this expansion strategy in other retail micro-markets where it has a deep understanding. The trust plans to selectively expand and consolidate high-potential retail spaces within established clusters, leveraging its robust customer and tenant insights.

With this acquisition, Nexus Select Trust maintains its Loan-to-Value (LTV) ratio at 18%, preserving a ₹1.00 billion debt headroom for future growth opportunities. This strategic move is expected to further strengthen the trust's position in the Indian retail real estate market and potentially drive long-term value for unitholders.

As the retail sector continues to evolve, Nexus Select Trust's focused expansion strategy and strong financial performance position it well to capitalize on the growing consumption trends in India's key urban centers.