Realty firm Nexus Select Trust has announced the acquisition of a 100% stake in Galaxy Infra Creations Pvt Ltd for ₹1,600 crore. According to reports from The Economic Times, the company made this announcement in a regulatory filing on Wednesday. The acquisition includes a 516,000 sq ft Grade-A shopping mall and a 164-key Hyatt Regency Hotel, both currently under construction in Guwahati. The board meeting on September 9, 2026 sanctioned the Share Purchase Agreement to expand the trust's footprint in Northeast India. This transaction marks Nexus Select Trust's entry into northeast India's consumption markets and is the second under-construction development transaction for Nexus Select Trust since its listing and the first such transaction in Northeast India. Construction is expected to be completed in Q4FY28, with rentals likely from FY29. The mall is already 30% pre-leased to major brands, and Nexus will take ownership and make payment only upon completion and receipt of approvals, shielding it from development risk.
As reported by The Economic Times, this transaction marks Nexus Select Trust's entry into northeast India's consumption markets. The company stated that the proposed acquisition aligns with its business objectives and represents the first step in its broader strategy to establish presence across high-potential consumption markets in east and northeast India. Guwahati has been identified as an attractive entry point into the region for the listed retail-assets backed REIT. According to Business Standard, Guwahati serves the Northeast region with a population of more than 50 million and is emerging as a retail and consumption hub, supported by rising household incomes, urbanisation and demand for organised retail and premium brands. Emkay Global Financial Services notes that Guwahati has limited Grade-A retail supply and remains a preferred destination for brands expanding their presence in the east, with no additional Grade-A retail supply expected in the city over the next five years. The deal is not classified as a related-party transaction, and no sponsor or group company holds an interest in Galaxy Infra Creations Pvt Ltd.
According to the latest reports, the total consideration comprises a combination of cash and unit swap arrangements. Nexus Select Trust will acquire 56,39,300 equity shares with a face value of ₹10 each. Funding is proposed through an estimated 40% debt raise, with the balance via fresh unit issuance and unit swap. A valuation report dated September 9, 2026 projects a market value of ₹16,479 million upon completion in December 2027. The acquisition implies a cap rate range of 8.25-8.50% for the mall and an EBITDA multiple range of 11.5-12.5x for the hotel. The consideration will be paid upon construction completion and receipt of necessary approvals. The acquisition is expected to be net asset value (NAV) and distribution per unit (DPU) accretive upon acquisition, with post-acquisition loan-to-value (LTV) expected to remain below 20%.
According to Business Standard, this acquisition is part of Nexus Select Trust's strategy to build a presence across consumption markets of East and Northeast India. The company's East India pipeline comprises six Grade-A retail assets totalling approximately 3.6 million square feet across four key cities. Dalip Sehgal, executive director and chief executive officer, stated that the company will now have a presence in Kolkata and Guwahati, two of the most affluent cities of East India. The company's ambition is to build an East India portfolio generating over ₹600 crore of net operating income (NOI), contributing more than 25% of its existing portfolio NOI. The Guwahati transaction is expected to strengthen the company's presence in eastern and northeastern markets, with the company identifying Kolkata, Guwahati, Siliguri, Patna, Bhubaneswar, Ranchi and Jamshedpur as key consumption hubs. According to JM Financial Institutional Securities, the Guwahati asset acquisition serves as a beachhead for the REIT's broader East India expansion, with a targeted around 3.6 msf pipeline across Bihar, West Bengal and Assam.
Emkay Global Financial has recommended a buy rating on Nexus Select Trust with a target price of ₹190 in its research report dated September 9, 2026. The brokerage firm noted that the acquisition is at an implied cap rate of 8.25-8.5% and marks the company's second under-construction acquisition after Nexus Runwal Gardens Mall in MMR. The acquisition underscores NXST's goal of expanding its portfolio to 18-20 million square feet by FY30, with an incremental NOI addition of ₹10 billion. JM Financial Institutional Securities has reiterated its buy rating with an unchanged target price of ₹190, based on the NOI capitalization method using cap rates of 7.0% for retail assets and 8.0% for the commercial and hospitality portfolio. Nexus Select Trust is India's first listed retail real estate investment trust and currently owns 19 assets in its portfolio. The Guwahati transaction is expected to strengthen its presence in the eastern and northeastern markets, with the company noting that Guwahati remains significantly under-supplied in Grade-A retail, with no planned Grade-A mall developments in the city.
