Guwahati: Nexus Select Trust is moving into the Northeast. The retail REIT will spend Rs 1,600 crore to acquire the upcoming Galaxy Complex in Beharbari, Guwahati. It is a big bet. The project includes a 5 lakh square foot Grade-A mall and a 164-key Hyatt Regency hotel.
Galaxy Infra Creations Private Limited is building the site. Nexus will buy the property after the builder finishes construction and secures all regulatory approvals. The deal signals a shift in strategy. Nexus is moving away from buying only finished assets to pursuing development opportunities in fast-growing markets.
Guwahati serves as the commercial hub for the region. Nexus views the city as a gateway to eight states and a market of 50 million people. The city has two million residents with a per-capita income of $7,000. It produces 45 percent of Assam's Gross State Domestic Product.
Nexus currently operates 19 retail centers across 15 cities. It wants to build a portfolio in East India that nets over Rs 600 crore in operating income. Priority markets include Kolkata, Siliguri, Patna, Bhubaneswar, Ranchi, and Jamshedpur.
“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 cited limited Grade-A retail infrastructure as a primary reason for the push.
The company plans to fund the deal with 40 percent debt. The rest will come from unit swaps and fresh unit issuance. The transaction implies an acquisition cap rate of 8.25 to 8.50 percent for the mall. The hotel carries an EBITDA multiple of 11.5 to 12.5 times. Promoters Manoj Kayal and Deepak Kayal designed the complex to blend retail, hospitality, commercial, and residential space.
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