Blackstone Sells Major Stake in Nexus Select Trust for Rs 4,354.90 Crore

Global investment firm Blackstone on Friday divested 31.55 crore units in its REIT firm 'Nexus Select Trust' for approximately Rs 4,354.90 crore in a block deal on stock exchanges. The move aligns with Blackstone's strategy to monetize its real estate portfolio.

Currently, Blackstone holds around 43 percent stake in Nexus Select Trust, India's first retail properties-backed real estate investment trust (REIT). Exchange data reveals that the units were sold at Rs 138 apiece, translating the total transaction value to Rs 4,354.90 crore.

Domestic mutual funds like ICICI Prudential Mutual Fund and HDFC Mutual Fund acquired units, alongside foreign companies such as Wells Fargo, Morgan Stanley, and French asset management firm Carmignac. Together, these entities purchased 11.75 crore units or 7.76 percent stake in Nexus Select Trust at an average price of Rs 138 per unit, reaching a deal value of Rs 1,622.49 crore.

Existing investors also increased their unit holdings in Nexus Select Trust. Post this divestment, Blackstone's stake in Nexus Select Trust will reduce to 21 percent. The portfolio of Nexus Select Trust includes 17 shopping malls with a gross leasable area of 9.9 million square feet, spread across 14 cities, two hotel properties, and three office assets.

Blackstone, through its affiliates BREP Asia II Indian Holding Co IX and BREP Asia SG Red Fort Holding, offloaded the units via separate bulk deals. The deal, amounting to over Rs 4,354 crore, is part of Blackstone's broader strategy to monetize its investments.

The divestment saw Nexus Select Trust's units drop by 4.93 percent, closing at Rs 137.05 on the NSE and Rs 137.88 on the BSE.

(With inputs from agencies.)