NEW DELHI: Blackstone-backed Nexus Select Trust has completed the acquisition of Vega City Mall in Bengaluru through its special purpose vehicle (SPV) i.e. Vijaya Productions, for a total enterprise value of Rs 913 crore.
This includes purchase consideration aggregating to Rs 869.75 crore and balance towards planned capex (including renewables) and closing costs. This is the company’s fourth asset in the city.
The acquisition is accretive and is expected to generate retail net operating income of Rs 78 crore. The acquisition is net asset value (NAV)/ distribution per unit (DPU) accretive and is expected to increase the net distributable cash flow (NDCF) by Rs 20 crore post servicing debt.
Dalip Sehgal, executive director and chief executive officer of the company said, “The transaction is NAV and DPU accretive as we have acquired this high-quality asset at an approximately 10% discount to the independent valuation. With a strong balance sheet post-acquisition, we continue to be well-positioned to deliver further inorganic growth opportunities.”
The acquisition is completely debt funded through listed non-convertible debentures (NCDs) issued at a coupon rate of 7.70% in Q3 FY25. Post-acquisition, the company’s loan-to-value (LTV) ratio was at 17%.
The mall is 96% leased to a diversified tenant mix comprising international and domestic brands.
