New Delhi: Blackstone-backed Nexus Select Trust is in the final stages of acquiring Galaxy group's mixed-use asset in Guwahati for around ₹1,300 crore, demonstrating evident institutional appetite for consumption-themed assets beyond traditional metropolitan centres.
The asset, spread over 1.2 million sq ft with a mix of retail, hotel and office, is still under construction, and the acquisition will expand the portfolio of Nexus Select Trust further.
Nexus Select Trust, India's first listed Retail REIT, and the promoter of Galaxy group declined to comment.
Earlier, Inorbit Malls, a subsidiary of K Raheja Corp, agreed to acquire two malls from Prozone Group in Chhatrapati Sambhaji Nagar (Aurangabad) and Coimbatore, respectively, for ₹1,242 crore in total.
The acquisition will add nearly 1.2 million sq ft to Inorbit's portfolio, which currently spans about 3.8 million sq ft across Mumbai, Hubballi, Vadodara, Visakhapatnam and Hyderabad. The transaction highlighted growing demand for retail asset in tier 2 cities by the institutional developer.
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"Large developers are increasingly looking at acquiring or partnering in Tier-2 city malls because consumption growth in these markets is now outpacing several metro catchments. Cities such as Indore, Lucknow, Jaipur, Coimbatore, Bhubaneswar and Surat are witnessing rising disposable incomes, better infrastructure and stronger aspiration-led spending, making organised retail far more viable than it was five years ago," said Shriram PM Monga, co-founder at SRED.
What is also driving interest is the relatively lower cost of acquisition and development compared to metros, while rental growth and footfalls are showing healthy momentum.
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"However, the strategy today is not just about building larger malls. Developers are focusing on experience-led retail with entertainment, food & beverage, wellness and community spaces becoming key demand drivers. Well-located malls in Tier-2 markets with the right tenant mix and catchment strength can emerge as highly sustainable long-term assets," Monga said.
The acquisition by Nexus is part of its strategy to double the portfolio by 2030, from 19 malls currently to 30-35 malls.
It has also completed a strategic bolt-on acquisition of 60,000 square feet of prime retail space within the Nexus Elante complex in Chandigarh.
The asset, spread over 1.2 million sq ft with a mix of retail, hotel and office, is still under construction, and the acquisition will expand the portfolio of Nexus Select Trust further.
Nexus Select Trust, India's first listed Retail REIT, and the promoter of Galaxy group declined to comment.
Earlier, Inorbit Malls, a subsidiary of K Raheja Corp, agreed to acquire two malls from Prozone Group in Chhatrapati Sambhaji Nagar (Aurangabad) and Coimbatore, respectively, for ₹1,242 crore in total.
The acquisition will add nearly 1.2 million sq ft to Inorbit's portfolio, which currently spans about 3.8 million sq ft across Mumbai, Hubballi, Vadodara, Visakhapatnam and Hyderabad. The transaction highlighted growing demand for retail asset in tier 2 cities by the institutional developer.
Also read | Expanding corporate occupier activity drives large office leasing across India
"Large developers are increasingly looking at acquiring or partnering in Tier-2 city malls because consumption growth in these markets is now outpacing several metro catchments. Cities such as Indore, Lucknow, Jaipur, Coimbatore, Bhubaneswar and Surat are witnessing rising disposable incomes, better infrastructure and stronger aspiration-led spending, making organised retail far more viable than it was five years ago," said Shriram PM Monga, co-founder at SRED.
What is also driving interest is the relatively lower cost of acquisition and development compared to metros, while rental growth and footfalls are showing healthy momentum.
Also read | India’s retirees are choosing keys over deeds in a quiet housing shift
"However, the strategy today is not just about building larger malls. Developers are focusing on experience-led retail with entertainment, food & beverage, wellness and community spaces becoming key demand drivers. Well-located malls in Tier-2 markets with the right tenant mix and catchment strength can emerge as highly sustainable long-term assets," Monga said.
The acquisition by Nexus is part of its strategy to double the portfolio by 2030, from 19 malls currently to 30-35 malls.
It has also completed a strategic bolt-on acquisition of 60,000 square feet of prime retail space within the Nexus Elante complex in Chandigarh.
