Tuesday, November 29, 2022
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HomeMarketStocksBlackstone planning to list retail REIT, raise $500 million

Blackstone planning to list retail REIT, raise $500 million

Bangalore | Mumbai: Blackstone Group plans to lift round $500 million via the sale of models within the nation’s first retail actual property funding belief (REIT) to institutional and retail traders, as per a regulatory submitting.

Blackstone Group, the entity behind India’s maiden REIT, is anticipated to file a draft prospectus with Sebi for an IPO of India’s first retail REIT, Nexus Choose Belief or Nexus, partnering with Choose Citywalk, Delhi.

The mall generates the very best tenant gross sales per sq ft for any mall in India.

The US-based private equity main’s portfolio of retail property for this REIT is estimated to be valued at over ₹23,000 crore. Blackstone will personal 60% of the proposed REIT, adopted by Choose Metropolis, which can personal round 25%, and the rest shall be held by small shareholders.

“India is experiencing robust consumption tailwinds pushed by a rising center class. Blackstone could be very bullish on the REIT asset class as the general governance creates a clear construction and is tax environment friendly,” mentioned an individual near the event.

Nexus Malls, Blackstone’s wholly-owned retail properties subsidiary, is one in all India’s largest retail actual property platforms, with 17 malls unfold throughout 14 main cities. In a brief span of 5 years, Nexus Malls owns and operates round 10 million sq ft of Grade A retail house within the nation.

The worldwide investor is taking a look at itemizing its retail property’ REIT towards the backdrop of rising consumption ranges, beneficial demographics and aspirational manufacturers within the nation.

The Indian retail market is underneath penetrated with solely 13% organised retail versus 86% within the US. Brick-and-mortar retail and ecommerce proceed to seize market share from unorganised retail, anticipated to witness a 23% CAGR from FY23E to FY25E.

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