New Delhi, April 8 -- Nexus Select Trust, a real estate investment trust (REIT) backed by private equity firm Blackstone, has agreed to acquire the Diamond Plaza mall in Kolkata for Rs 347.5 crore ($37.5 million).
The REIT will acquire Super Diamond Enterprises, a partnership firm that owns the mall, from its partners, it said in a statement.
The mall has a gross leasable area of 244,000 square feet. It recorded revenue from operations of Rs 40.1 crore for 2024-25, compared with Rs 37 crore the year before.
The acquisition will help the REIT to expand its presence in eastern India, it said, adding that the transaction will be completed in four months' time.
Nexus Select Trust has a retail portfolio of 10.6 million sq ft through 19 malls in 15 cities in the country. It also owns three office spaces (1.3 million sq. ft.) and two hotel properties (354 keys) in its portfolio.
The REIT is planning to double its portfolio in the next five years as it bets on rising demand in smaller cities. It sees smaller cities as an attractive opportunity due to lower competition and rising spending power.
In February, it signed an agreement to pick up a 50% stake in a shopping mall being constructed by Mumbai developer Runwal Enterprises for Rs 434 crore. In January, International Finance Corporation, the private-sector investment arm of the World Bank Group, proposed to provide up to $250 million in debt capital to the REIT to help it make acquisitions, repay loans or expand its business.
Published by HT Digital Content Services with permission from VC Circle.