Blackstone-backed Nexus Select Trust, India's first publicly listed retail real estate investment trust (Reit), has successfully 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. According to reports from Mint, the bonds have a tenure of 10 years and IFC subscribed to approximately ₹250 crore of the issue. The proceeds will be used largely to refinance existing debt.
The fund has declared distributions of ₹2.198 per unit for the quarter ended September 30, 2025, comprising ₹0.623 per unit in the form of interest, ₹1.233 per unit in the form of dividend, ₹0.004 per unit as other income and ₹0.338 per unit as repayment of SPV level debt. As reported by Mint, 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, demonstrating consistent operational performance across the portfolio.
Following the refinancing, Nexus' net debt stands at around ₹5,348 crore, translating into a loan-to-value (LTV) ratio of 18%. As reported by Mint, CFO Rajesh Deo explained that the company had a tranche of non-convertible debentures coming up for renewal, and IFC's subscription of around ₹250 crore of the bond issue has helped address this requirement. The bonds are linked to sustainability targets including achieving net zero by 2030 and EDGE-green building certification system by IFC for new acquisitions.
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. As reported by Mint, the company is pursuing an aggressive inorganic growth strategy, with plans to double its portfolio by 2030. 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.
CEO Dalip Sehgal noted that the company had a robust quarter both in terms of consumption and profitability, with categories such as jewellery, beauty and health, and cinema performing well. According to Mint, he highlighted that fashion which had not seen much growth has also grown, with brands wanting larger stores and wanting to open more stores. IFC's Imad N Fakhoury emphasized that the investment demonstrates how innovative financing can unlock value in existing assets and reinforces REITs as compelling long-term investment platforms in India.
