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The deal will give Nexus a 100% stake in the upcoming Galaxy Complex in Beharbari, Guwahati, which will comprise a 0.5 million sq. ft. Grade-A mall and a 164-key Hyatt Regency hotel. The assets will be developed by the seller, with Nexus taking over operations once construction is completed and the required approvals are received.
The transaction is Nexus Select Trust's first under-construction development deal in Northeast India and its second since its listing. The company said the move is part of a broader plan to build a presence across East and Northeast India, where it sees growing consumer spending and limited Grade-A retail supply.
Why Guwahati matters
Guwahati is being positioned as Nexus' entry point into Northeast India, serving as a commercial gateway to the region's eight states. The city has a population of more than two million and accounts for around 45% of Assam's GDP, according to Nexus.
The company sees an opportunity in what it describes as an underpenetrated organised retail market, with limited Grade-A mall supply in the city. Rising household incomes, urbanisation and demand for premium brands are also supporting the growth of organised consumption in Guwahati.
For Nexus, the transaction extends a portfolio that has grown from two malls to 19 Grade-A urban consumption centres across 15 Indian cities.
Deal structure
The Rs 1,600 crore consideration will be paid once construction is completed and the necessary approvals are secured.
The transaction is expected to be funded through an estimated 40% debt raise, with the remaining amount coming through fresh unit issuance and a unit swap. The final funding structure will be decided at the time of closing.
Nexus expects the acquisition to be NAV and DPU accretive once completed. Its post-acquisition loan-to-value ratio is expected to remain below 20%, leaving the Trust with an estimated $1 billion in debt headroom for future inorganic expansion.
The deal implies an 8.25–8.50% acquisition cap rate for the mall, while the hotel component is valued at an 11.5–12.5x EBITDA multiple, according to the company.
Nexus eyes larger East India footprint
The Guwahati project is also part of a larger East India expansion strategy. Nexus currently has a presence in Kolkata and said it is looking to build a portfolio across key consumption markets including Siliguri, Patna, Bhubaneswar, Ranchi and Jamshedpur.
The company has a pipeline of six Grade-A retail assets totalling around 3.6 million sq. ft. across four cities in East India. It aims to build an East India portfolio generating more than Rs 600 crore in net operating income (NOI), which would account for over 25% of its existing portfolio NOI.
“This acquisition translates our stated ambition for East and Northeast India into action,” said Dalip Sehgal, Executive Director and CEO of Nexus Select Trust. He said Guwahati offers a combination of rising consumption, strong brand demand and limited Grade-A retail infrastructure.
Nexus Chief Acquisition Officer Gautam Vaswani said the structure allows the company to secure an asset in the Northeast without taking on development risk, while keeping its balance sheet capacity available for future growth.
What Nexus owns today
Nexus Select Trust is India's first publicly listed retail REIT. Its portfolio currently includes 19 Grade-A urban consumption centres with 10.7 million sq. ft. of gross leasable area, spread across 15 cities.
It also owns three hotel assets with a combined 450 keys and three office assets with 1.3 million sq. ft. of gross leasable area. Its retail portfolio has around 1,100 domestic and international brands across more than 3,200 stores.
The Guwahati transaction therefore represents more than a single new project for Nexus. It gives the REIT a foothold in a market where organised retail remains relatively underdeveloped and provides a base from which it can pursue its larger East and Northeast India expansion strategy.
