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Nexus Select Trust, backed by Blackstone, plans to double its mall portfolio in India over the next five years as it banks on rising consumption in smaller cities. The company currently operates 19 malls, mostly in South and Western India, and aims to expand into eastern markets where it has only one property. Executives said consumers-including those in non-metro towns-continue to prefer mall visits for branded retail, supporting its confidence in physical shopping spaces. Nexus expects to grow to 30-35 malls, with upcoming projects split between major metros and smaller cities. The trust will fund expansion largely through debt and may consider equity, benefiting from regulatory changes that boost REIT investment access.
Nexus Select Trust, supported by Blackstone, recently stated that it plans to double its shopping centre portfolio across India within the next five years. The Mumbai-based company, which currently runs 19 malls, is betting strongly on rising consumption in smaller cities as it prepares for the next phase of expansion. Advertisement
The trust primarily operates in South and Western India, with 13 of its properties located across the two regions. Executives noted that the next cycle of growth will focus more heavily on eastern India, where Nexus currently has only one operational mall.
Although online retail continues to expand rapidly, the company observed that Indian consumers, including those in non-metro urban centres, remain inclined to visit malls, particularly for branded retail experiences. This continued footfall is shaping the firm's outlook on brick-and-mortar retail.
Pratik Dantara, chief investor relations officer and head of strategy, explained that the trust was aiming to increase its portfolio to a range of 30 to 35 malls over the next five years. He added that smaller cities present a compelling opportunity due to limited competition and improving purchasing power, and that upcoming projects are expected to be divided approximately equally between major metros and smaller cities.
The company's plans come as competition intensifies in the organised retail space. Rival player Forum Malls, part of the Prestige Group, had indicated in September that it intends to launch 14 new malls across major Indian cities by 2029.
Nexus expects to fund most of its expansion through debt and may also consider an equity raise. The trust, which currently carries around USD 546.1 million in debt, plans to nearly double its borrowing to support acquisitions and development activity.
Debt fundraising among India's asset-backed investment trusts has increased significantly and is projected to continue rising, following issuances exceeding USD 2 billion in the first half of the year as declining interest rates encourage investor appetite.
As India's first listed retail REIT, introduced in 2023, Nexus is positioned to gain from regulatory changes that will make such vehicles eligible for major market indexes. This shift is expected to attract passive inflows and allow mutual funds to include REITs in equity portfolios, strengthening the sector's access to institutional capital.
Source - Reuters
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