BENGALURU | MUMBAI: Real estate investment trust (REIT) Nexus Select Trust is in talks to acquire The Marina Mall in Chennai which has nearly 600,000 square feet retail space, said people with direct knowledge of the development.
The mall, which is located on Old Mahabalipuram Road in Tamil Nadu’s capital city of Chennai, was developed through OMR Mall Developers (OMDR) – a special purpose vehicle (SPV) set up in 2008 by partners including owners of the land parcel and realty developer Allied Investments & Housing, which is also the main project contractor.
“No number discussions yet,” Aslam Packeer Mohamed, managing director, OMDR, told ET when asked about the talks. Nexus Select Trust didn’t respond to ET’s queries.
ET reported earlier Nexus Select Trust is in advanced stages of completing the acquisition of three Grade-A malls in Hyderabad for ₹1,000 crore and is awaiting approvals from the authorities concerned.
The real estate investment trust is looking to double its assets portfolio to 20 million square feet in the next five years with an acquisition-led growth strategy. India’s retail sector is experiencing a surge in activity to capitalise a sharp rebound in consumption since the pandemic. Last fiscal saw a 11.5% increase in mall consumption, 6.7% rise in occupancy and 9.6% average rental growth, as per data from Shopping Centres Association of India (SCAI).
Value of business or revenue generated by malls across India in the last two years stands at over ₹4 lakh crore, the data showed. Around 50 new malls are expected to open in the next two years, adding to 31 malls opened in the last two years. This underscores a sustained appetite for shopping experiences, underpinned by evolving consumer preferences and lifestyle aspirations.
The Marina Mall opened in February 2019 and houses six shopping and entertainment floors and three basement parking floors.
The mall has more than 25 food establishments and 150 brands along with an amusement centre, a kids’ zone, entertainment zones, a hypermarket, home zones, and eight-screen digital multiplex theatres. It also houses south India’s largest inflatable park.
