Blackstone-backed Nexus Select Trust is nearing the completion of its acquisition of a mixed-use asset from the Galaxy group in Guwahati, valued at approximately ₹1,300 crore. This move illustrates a clear institutional interest in consumption-oriented assets that extend beyond conventional metropolitan areas.
The property, which encompasses 1.2 million square feet and includes a combination of retail, hotel, and office spaces, is still under construction. This acquisition will further enhance the portfolio of Nexus Select Trust.
Nexus Select Trust, recognized as India’s first publicly listed Retail REIT, along with the promoter of the Galaxy group, has chosen not to provide any comments on the matter. Previously, Inorbit Malls, a subsidiary of K Raheja Corp, reached an agreement to purchase two malls from Prozone Group located in Chhatrapati Sambhaji Nagar (Aurangabad) and Coimbatore, for a total of ₹1,242 crore.
This acquisition will contribute nearly 1.2 million square feet to Inorbit’s existing portfolio, which currently covers around 3.8 million square feet across cities such as Mumbai, Hubballi, Vadodara, Visakhapatnam, and Hyderabad. This transaction underscores the increasing demand for retail assets in tier 2 cities by institutional developers. “Major developers are progressively seeking to acquire or partner in malls located in Tier-2 cities, as the growth in consumption within these markets is now surpassing that of several metropolitan catchments.
Cities like Indore, Lucknow, Jaipur, Coimbatore, Bhubaneswar, and Surat are experiencing rising disposable incomes, improved infrastructure, and a stronger inclination towards aspiration-led spending, making organized retail significantly more feasible than it was five years ago,” stated Shriram PM Monga, co-founder of SRED. Additionally, the relatively lower costs associated with acquisition and development in these areas, coupled with healthy rental growth and foot traffic, are further fueling interest.
Nevertheless, the current strategy extends beyond merely constructing larger shopping centers. Developers are now prioritizing experience-driven retail, where entertainment, food and beverage options, wellness facilities, and community areas are becoming essential factors in driving demand. Malls situated in Tier-2 markets that possess the appropriate tenant mix and strong catchment areas have the potential to develop into highly sustainable long-term assets,” Monga stated.
The acquisition by Nexus aligns with its objective to expand its portfolio by 2030, increasing from 19 malls at present to a target of 30-35 malls. Additionally, it has successfully completed a strategic bolt-on acquisition of 60,000 square feet of premium retail space within the Nexus Elante complex located in Chandigarh.
