Nexus Select Trust (NSE: NXST / BSE: 543913) closes the acquisition of Vega City mall, a high-quality Grade-A urban consumption centre in Bengaluru. Vega City mall is a high- quality Grade-A mall located in an affluent South Bengaluru neighbourhood close to an upcoming metro station. The mall is 96% leased to a diversified tenant mix comprising international and domestic brands. South Bengaluru is one of the strongest consumption markets in India
With this acquisition, Nexus Select Trust consolidates its presence in Bengaluru (4th asset in Bengaluru) with embedded upsides from potential operational synergies
Transaction Highlights
- Completed the transaction at an attractive valuation which is at approx. 10% discount to the independent valuation.
- Accretive acquisition with stabilized Retail Net Operating Income of INR 78 cr. The acquisition is NAV / DPU accretive and is expected to increment NDCF by INR 20 cr (post servicing debt).
- Leveraging its strong balance sheet, the acquisition is completely debt funded through listed Non- convertible Debentures issued at a coupon rate of 7.70% in Q3 FY25. Post-acquisition LTV is 17%.
Dalip Sehgal, Executive Director and Chief Executive Officer at Nexus Select Trust, said, “We are delighted to close the acquisition of Vega City mall, a high-quality Grade-A urban consumption centre in an affluent South Bengaluru neighbourhood with a diversified tenant mix comprising international and domestic brands. This acquisition reaffirms the commitment to our business model and the promise we made at the time of listing to grow the portfolio through accretive acquisitions of high- quality assets. Vega City mall is located in a dense catchment and deepens our presence in Bengaluru, which remains one of India’s strongest consumption markets, and significantly enhances our scale and ability to deliver embedded growth
The transaction is NAV and DPU accretive as we have acquired this high-quality asset at an approximately 10% discount to the independent valuation. This acquisition aligns perfectly with our overall strategy to maximize total returns for our unitholders. Given Nexus’s existing strong presence in Bengaluru, we believe this acquisition will result in synergies in leasing, operations and marketing. With a strong balance sheet post-acquisition, we continue to be well-positioned to deliver further inorganic growth opportunities.”
Munjal Almoula, Head of Tax & Regulatory Services, BDO India
“As was expected, the New Income Tax Bill doesn’t seek to introduce any additional tax burden on taxpayers. What the bill attempts to do is simplify the language contained in the Income-tax Act of 1961, provide greater clarity through explanations and provides more transparency to taxpayers. Another important aspect introduced through the new tax bill is providing guidance on the taxability of income streams emanating through new age business such as digital assets etc.”
Source : Press Release
