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.

Nexus Select Trust , through its manager Nexus Select Mall Management Private Limited, has made a significant move in the debt market by allotting commercial papers worth INR 1,500 million. This financial maneuver, approved by the Borrowings Committee, marks an important development in the trust's short-term funding strategy.

Key Details of the Commercial Paper Issuance

Issuance Context and Implications

This allotment is part of a broader financial strategy previously approved by Nexus Select Trust. The trust had earlier received approval for issuing commercial papers up to an aggregate principal amount of INR 1,000 million and INR 5,000 million. The current issuance falls within this approved limit, indicating a structured approach to short-term borrowing.

The commercial papers have been issued in dematerialized form on a private placement basis, which is a common practice for such short-term debt instruments. This method of issuance allows for easier trading and transfer of securities while potentially attracting institutional investors.

Market Impact and Investor Relations

Coinciding with this new issuance, Nexus Select Trust also redeemed a previous commercial paper worth INR 150 crore on November 10, 2025. This redemption at maturity demonstrates the trust's commitment to meeting its financial obligations promptly.

Furthermore, the trust's management team conducted a physical meeting with an institutional investor on November 7, 2025. While the specifics of the meeting were not disclosed, such engagements are crucial for maintaining investor relations and potentially discussing financial strategies, including debt issuances like the current commercial paper allotment.

The issuance of these commercial papers, coupled with the timely redemption of previous debt and proactive investor engagement, suggests that Nexus Select Trust is actively managing its short-term liquidity needs while maintaining transparency with its stakeholders.

As the commercial papers are proposed to be listed on the BSE Limited's wholesale debt market segment, it may provide liquidity to the instrument and allow for price discovery in the secondary market. This listing could potentially attract a wider range of institutional investors interested in short-term, high-quality debt instruments.

The placement of these commercial papers at a discount rate of 6.18% per annum may indicate investor interest in Nexus Select Trust's short-term debt offerings.