Nexus Select Trust raises ₹700 crore via IFC-led bond issue

BENGALURU: Blackstone-backed Nexus Select Trust, India’s first publicly listed retail real estate investment trust (Reit), has increased its stake ₹International Finance Corp. 700 crore through bond issue anchored by (IFC). This was the World Bank Group’s first investment in a retail REIT in the country.

Most of the proceeds will be used to refinance existing debt. The maturity of the bonds is 10 years.

IFC, the private sector investment arm of the World Bank Group, ₹Nexus said the issue was 250 crore.

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“There were a number of NCDs (non-convertible bonds) that were about to be renewed. IFC subscribed for approx. ₹250 crore of the bond issue. This ties in with sustainability targets, including achieving net zero by 2030 and IFC’s EDGE green building certification system for new acquisitions, said Rajesh Deo, chief financial officer of Nexus Select Trust. Mint in an interview.

Following the refinancing, Nexus’ net debt is approximately ₹5,348 crore, which translates into a loan-to-value (LTV) ratio of 18%.

The fund reported a 15% year-over-year increase in retail net operating income (NOI). ₹450 crore in the October-December quarter, according to earnings released on Monday.

For the quarter ending in December, Nexus announced the following breakdown: ₹358.60 crore or ₹2.37 per unit, the highest quarterly payment since listing. The occupancy rate remained at 97% for the 11th consecutive quarter.

Dalip Sehgal, Executive Director and Chief Executive Officer of Nexus Select Trust, said, “We had a strong quarter in terms of both consumption and profitability. Categories such as jewellery, beauty and health and cinema performed well. Fashion, which has not shown much growth, also grew. Brands want bigger stores and want to open more stores. Therefore, demand from both domestic and international brands is strong.”

Sehgal added that supply will likely be a constraint compared to demand.

Imad N Fakhoury, IFC South Asia regional division director, said: “This sustainability-linked investment in Nexus Select Trust supports smarter energy use across its portfolio and accelerates progress towards sustainable operations by 2030. The investment also demonstrates how innovative financing can unlock value in existing assets and strengthen REITs as compelling long-term investment platforms and asset classes in India.”

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Nexus, which went public in 2023, has a portfolio of 19 Class A malls and malls spanning 10.7 million square feet across 15 cities, as well as three complementary hotel assets and three office properties. Class A shopping centers are higher quality assets with strong tenant profiles, better amenities and prime locations.

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The company is pursuing an aggressive inorganic growth strategy, with plans to double its portfolio by 2030. Under this model, Blackstone typically purchases retail assets that are then transferred to Nexus. In 2025, Nexus announced the acquisition of MBD Neopolis mall and its affiliated Radisson Blu Hotel in Ludhiana. ₹490 crore and closed the acquisition of Vega City mall in Bengaluru ₹913 crore.

Nexus currently has an acquisition pipeline of 11 assets across cities, with four in the due diligence stage.

REITs are investment vehicles that own or operate income-producing real estate, allowing investors to earn a share of rental income without directly owning the property.

Besides Nexus Select Trust, India’s other publicly listed REITs are Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT and Knowledge Realty Trust.