Bengaluru’s Vega City Mall acquired for ₹913 crore by Nexus Select Trust

Nexus Select Trust, India’s first retail-focused real estate investment trust (REIT), has acquired Vega City Mall in South Bengaluru for ₹913 crore. This marks the company’s fourth mall acquisition in the city, solidifying its position as the largest retail platform in Bengaluru in terms of the number of malls.

Also read: Volvo expands Bengaluru plant with Rs 1,400 crore investment, to create 2,000 direct jobs

Spanning approximately 0.5 million square feet, Vega City Mall is a Grade-A retail property. The total investment includes ₹43 crore earmarked for planned improvements, such as renewable energy projects and other upgrades.

Nexus Select highlighted the financial benefits of the acquisition. The transaction is net asset value and distribution per unit accretive, as it acquired this high-quality asset at around a 10% discount to the independent valuation. This aligns perfectly with its strategy to maximize total returns for its unitholders.

The acquisition was fully funded through debt, utilizing non-convertible debentures (NCDs) issued at a 7.70% interest rate in the December quarter. This raises Nexus Select’s loan-to-value ratio to 17%.

Founded in 2016, Nexus Select Trust operates 17 Grade-A urban consumption centers across 14 cities, with a gross leasable area of 9.9 million square feet. In the first half of FY 2025, it reported a net operating income of ₹7.4 billion and revenue of ₹11.1 billion, demonstrating strong financial growth.