By Anuran Sadhu
BENGALURU (Reuters) -Blackstone-backed Nexus Select Trust plans to double its shopping centre portfolio in India over the next five years, as it bets on rising demand in smaller cities, a senior executive at the firm told Reuters.
The Mumbai-based firm currently operates 19 malls across India. Nexus, predominantly operates properties in South and Western India with 13 malls in the two regions, aims to expand its portfolio in the east, where it only has one mall.
Despite the rapid growth of online shopping platforms, Indian consumers, even outside the big cities, continue to visit shopping malls, favoring branded retail outlets.
“We are looking to double our portfolio to anywhere between 30 to 35 (malls) in five years,” said Pratik Dantara, chief investor relations officer and head of strategy.
Nexus sees smaller cities as an attractive opportunity due to lower competition and rising spending power, Dantara said, adding the company’s upcoming projects will be split roughly equally between metros and smaller urban centres.
Rival Forum Malls, the retail arm of Prestige Group, told Reuters in September it plans to launch 14 new malls across major Indian cities by 2029.
Nexus will fund its expansion mainly through debt and may pursue an equity raise. The company, which has about $546.1 million in debt, plans to nearly double that to finance new acquisitions.
Debt fundraising by India’s asset-backed investment trusts has been on the rise, and are expected to keep growing after exceeding $2 billion in the first half of 2025, as falling interest rates fuel investor demand.
Nexus, which became India’s first listed retail REIT in 2023, stands to benefit from a regulatory shift that will make it eligible for major indexes and attract passive inflows, allowing mutual funds to include REITs in equity portfolios and opening the door to greater institutional investment.
($1 = 87.8950 Indian rupees)
(Reporting by Anuran Sadhu in Bengaluru)
