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 raised ₹700 crore through a bond issue anchored by the International Finance Corp. (IFC), marking the World Bank Group arm’s first investment in a retail Reit in the country.

The proceeds will be used largely to refinance existing debt. The bonds have a tenure of 10 years.

IFC, the private-sector investment arm of the World Bank Group, subscribed to about ₹250 crore of the issue, Nexus said.

“We had a tranche of NCDs (non-convertible debentures) coming up for renewal. IFC has subscribed to around ₹250 crore of the bond issue. It is linked to sustainability targets including achieving net zero by 2030, and EDGE-green building certification system by IFC for new acquisitions,” Rajesh Deo, chief financial officer, Nexus Select Trust told Mint in an interview.

Following the refinancing, Nexus’ net debt stands at around ₹5,348 crore, translating into a loan-to-value (LTV) ratio of 18%.

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

For the December-ended quarter, Nexus declared a distribution of ₹358.60 crore, or ₹2.37 per unit, its highest quarterly payout since listing. Occupancy remained at 97% for the 11th consecutive quarter.

“We had a robust quarter both in terms of consumption and profitability. Categories such as jewellery, beauty and health, and cinema, did well. Fashion which had not seen much growth has also grown. Brands want larger stores and want to open more stores. So, demand is strong both from domestic and international brands,” said Dalip Sehgal, executive director and chief executive, Nexus Select Trust.

Compared with demand, supply is likely to be a constraint, Sehgal added.

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

Nexus, which went public in 2023, owns a portfolio of 19 Grade-A shopping malls and shopping centres spanning 10.7 million square feet across 15 cities, along with three complementary hotel assets and three office properties. Grade-A malls are higher-quality assets with strong tenant profiles, better features and prime locations.

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

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

Reits are investment vehicles that own or operate income-generating real estate, allowing investors to earn a share of rental income without directly owning properties.

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.