A view of the Vega City Mall in Bengaluru.
Credit: Instagram/vegacitymall
New Delhi: Nexus Select Trust, a REIT backed by rent yielding retail assets, will acquire a shopping mall in Bengaluru for Rs 877 crore.
According to the latest regulatory filing, the Board of Directors of Nexus Select Mall Management Pvt Ltd -- the manager to Nexus Select Trust -- has approved the acquisition of Vega City Mall in Bengaluru.
The assets consist of a fully functional mall having a total area of 0.45 million sq ft from Blue Horizon Hotels as well as land on which the mall is constructed, presently owned by A S Muniswamy Raju HUF, for a total purchase consideration not exceeding Rs 877 crore or for a consideration as may be mutually agreed by the parties to the transaction.
The acquisition by Nexus Select Trust will be through its special purpose vehicle Vijaya Productions Pvt Ltd.
The deal is subject to execution of the transaction documents and fulfilment of customary and commercially agreed closing conditions.
Vijaya Productions Pvt Ltd will be paying cash consideration for acquisition of the mall and the land.
The deal is expected to conclude next week.
The land, currently owned by the A S Muniswamy Raju HUF, has been leased to the Blue Horizon Hotels Pvt Ltd under a leasing arrangement.
"With this proposed acquisition, Nexus Select Trust, will consolidate its presence in Bengaluru and aim to benefit from embedded upsides from potential operational synergies," the filing said.
Nexus Select Trust's portfolio comprises 17 shopping malls with a gross leasable area of 9.9 million sq ft spread across 14 cities in India, two complementary hotel assets (354 keys) and three office assets with a gross leasable area of 1.3 mn sq ft.
Its retail real estate assets have a tenant base of 1,000+ domestic and international brands spanning across around 3,000 stores.