Nexus Select Trust takes first step towards scaling presence in East and Northeast India

According to a release, the transaction marks the first step in Nexus broader strategy to build a presence across the high-potential consumption markets of East and Northeast India, with Guwahati providing an attractive entry point into the region.

Nexus will be acquiring a 100% stake at a purchase consideration of INR 1,600 crores in the upcoming Galaxy Complex, comprising the 0.5M sf Nexus Galaxy Mall and 164-key Hyatt Regency Hotel. These assets will be developed by the seller to mutually agreed specifications. Nexus will assume operational responsibility upon completion of construction and receipt of necessary approvals.

Assam Chief Minister Dr Himanta Biswa Sarma wrote on X, "Guwahati's retail real estate market is a hot deal now Nexus Select Trusts 1,600 crore deal to acquire 100% ownership of the upcoming Galaxy complex, comprising a 5 lakh sq ft mall and a 164-room Hyatt Regency, is a major vote of confidence in the citys potential. This landmark investment reflects Guwahati's rising consumer demand and strong growth momentum. I invite industry bodies, investors and market leaders to be part of this remarkable growth story."

This transaction marks Nexus Select Trusts first under-construction development transaction in Northeast India and second such transaction since listing. It also represents a strategic evolution of the platform, from a decade of disciplined portfolio expansion, scaling from two malls to 19 best-in-class assets across India, towards selectively pursuing structurally de-risked development opportunities in high-potential consumption markets aligned with Indias long-term consumption growth.

Dalip Sehgal, Executive Director and Chief Executive Officer, Nexus Select Trust, said, This acquisition translates our stated ambition for East and Northeast India into action. It marks our strategic entry into Northeast India, our second under-construction development transaction since listing and the first step towards building a scaled presence across one of the countrys most promising consumption corridors. We will now have a presence in Kolkata and Guwahati, two of the most affluent cities of East India. Guwahati is the natural gateway to the region and offers a compelling combination of rising consumption, strong brand demand and limited Grade-A retail infrastructure."

GHe further added, "The transaction allows us to secure a first-mover position in strengthening our wider presence in East and Northeast India. This acquisition will enable us to scale across East Indias key consumption hubs like Kolkata, Guwahati, Siliguri, Patna, Bhubaneswar, Ranchi and Jamshedpur. With our robust East India pipeline of 6 Grade-A retail assets totalling to approximately 3.6 million square feet across 4 key cities, we are building a dominant presence in the region. Our ambition is to build East India portfolio generating over INR 600 crore of NOI, contributing more than 25% of our existing portfolio NOI, meaningfully advancing our long-term vision of a resilient, pan-India platform anchored in growth, sustainability, and consumer delight."

Gautam Vaswani, Chief Acquisition Officer, Nexus Select Trust, said,The transaction enables Nexus to secure an asset in Northeast without taking on development risk. The transaction implies an 8.25-8.50% acquisition cap rate range for the mall and a 11.5-12.5x EBITDA multiple range for the Hotel. The transaction is expected to be NAV and DPU accretive upon acquisition. Importantly, our post-acquisition LTV will remain below 20%, preserving substantial balance-sheet capacity for future growth.

Manoj Kayal and Deepak Kayal, Promoters, Galaxy Infra Creations Private Limited, said, We are pleased to partner with Nexus, Indias largest Grade-A urban consumption centre platform. Galaxy Complex has been envisioned as a landmark mixed-use development that will bring together high-quality retail, hospitality, commercial and residential infrastructure in one of Northeast Indias fastest-growing markets. This transaction allows Nexus to bring its proven capabilities to own, operate and scale Grade-A urban consumption centres, while Hyatt partners them to bring globally recognised hospitality expertise. We believe this transaction will help realise the developments full potential and create a destination of enduring value for Guwahati and the wider region. (ANI)