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Nexus Select Trust is set to acquire a 100% stake in the upcoming Galaxy Complex in Beharbari, Guwahati, for around ₹1,600 crore.
This will be Nexus' second under-construction acquisition since its listing and its first in Northeast India.
Note: Nexus Select Trust is India's first listed retail Real Estate Investment Trust - REIT.
The deets: Galaxy Complex is still under construction. Once complete, the mixed-use project will include the 5 lakh sq ft Nexus Galaxy Mall and a 164-room Hyatt Regency Hotel.
Importantly, Nexus doesn't have to take on the construction risk. It will pay the consideration and take operational control only after construction is complete and the required approvals are in place.
Zoom out: Guwahati acts as a major commercial centre for the wider Northeast, a region with a population of more than 50 million people.
Rising incomes, urbanisation and growing demand for national and premium brands are making the city increasingly attractive to organised retailers.
But according to Nexus, Guwahati remains significantly undersupplied when it comes to Grade-A malls, with no other planned Grade-A mall developments in the city.
Eventually, Nexus wants its East India portfolio to generate more than ₹600 crore in annual net operating income, equivalent to over 25% of its existing portfolio NOI.
Big theme: online shopping hasn't killed India's mall story.
For large retailers, malls are increasingly about more than simply selling products. They combine shopping with restaurants, cinemas, entertainment and premium experiences that are difficult to replicate online.
At the same time, much of India's high-quality mall supply has historically been concentrated in the largest metropolitan cities.
As spending power grows in cities outside the traditional metros, mall operators and retailers have another market to chase.
And Guwahati is particularly important because it isn't serving just one city. It acts as a shopping and business gateway for much of Northeast India.
That's why Nexus' ₹1,600 crore deal is bigger than one new mall.
