NEW DELHI: Blackstone-backed Nexus Select Trust is concerned with the sluggish performance of fashion brands as they bring in about half of the business in its portfolio of 17 malls across India totalling more than 10 million sq ft, said Dalip Sehgal, executive director and chief executive officer.
The concerns are weighing on Nexus as India’s first publicly listed retail Real Estate Investment Trust (REIT) is looking to invest Rs 1,000 crore in acquiring three malls in Hyderabad to grow the total portfolio to 20 malls and 11 million sq ft.
“The way fashion brands are doing is a matter of concern for us but other categories such as electronics and beauty are growing by 18-20% and helped us in achieving the target,” said Sehgal. “In fashion segment also, some of the D2C brands are doing really well, so the existing brands need to reinvent and I believe the second half of the year will be better.”
Nexus is in the final stages of acquiring the E-Galleria mall in Moosarambagh, L&T Metro Mall in Punjagutta, and the Next Galleria Mall near Irrum Manzil.
Nexus has sought approval from the Telangana government to conclude the deals.
Nexus beat FY24 guidance, achieving 13% increase in sales at Rs 12,000 crore on the ‘back of strong leasing and consumption momentum. Footfall in its malls grew 7% against flat growth in FY23.
“We are expecting 9% net operating income growth in FY25 and this excludes the income from malls that we will add in the portfolio this year. We will continue to add 1-1.5 million sq ft every year till next 3-5 years and we have more offers on the table, which we are evaluating,” said Sehgal.
