Nexus Select Trust, India's first listed retail real estate investment trust (REIT), has announced its formal entry into Northeast India through a landmark acquisition agreement worth Rs 1,600 crore in Guwahati, Assam. The deal represents a significant milestone for institutional retail real estate development in the region, marking the trust's second under-construction asset purchase since its public stock market debut.
Details of the Galaxy Complex Transaction
Under the terms of the transaction, Nexus Select Trust will acquire a 100 per cent equity stake in the upcoming Galaxy Complex located in the Beharbari area of Guwahati. The mixed-use development features a Grade-A retail destination named Nexus Galaxy Mall, spanning 0.5 million square feet of gross leasable area, alongside a premium 164-key Hyatt Regency hotel.
The asset is being developed by Galaxy Infra Creations Private Limited based on mutually agreed specifications established with Nexus. Operational responsibility will be handed over to Nexus Select Trust only after construction reaches completion and all requisite regulatory and statutory approvals are formally secured. The entire Rs 1,600-crore transaction consideration is structured to be disbursed upon completion of these milestones.
Strategic Positioning of Guwahati in Northeast India
Nexus Select Trust has identified Guwahati as a critical commercial gateway to access the broader Northeast Indian market. The city connects eight regional states housing a combined population exceeding 50 million people, offering massive potential for organized modern retail infrastructure expansion.
The proposed development occupies a prime location within a dense, affluent catchment area in Guwahati that currently remains underserved in terms of Grade-A shopping space. Guwahati features a population of over two million residents with an average per capita income of approximately $7,000. Furthermore, the urban economic center generates roughly 45 per cent of Assam's overall Gross State Domestic Product (GSDP).
Financial Structure, Valuations, and Debt Capacity
To fund the Rs 1,600-crore consideration, Nexus Select Trust plans to raise approximately 40 per cent of the total transaction amount through debt financing. The remaining balance is proposed to be funded via a combination of fresh REIT unit issuances and unit swap mechanisms, with the definitive capital structure to be finalized closer to closing.
Management expects the acquisition to be accretive to both Net Asset Value (NAV) and Distribution Per Unit (DPU). Post-transaction, the REIT's loan-to-value (LTV) ratio is projected to stay well below 20 per cent, preserving substantial balance sheet headroom for future inorganic growth. Gautam Vaswani, Chief Acquisition Officer at Nexus Select Trust, noted that the deal reflects an 8.25 to 8.50 per cent cap rate for the retail mall component and an 11.5 to 12.5 times EBITDA multiple for the hotel asset, adding that the transaction model shields the REIT from direct construction and development risks.
Regional Expansion Strategy and NOI Growth Targets
Dalip Sehgal, Executive Director and Chief Executive Officer of Nexus Select Trust, emphasized that the Guwahati acquisition marks the launching pad for the company's broader expansion strategy across Eastern and Northeastern India. The REIT aims to establish strong operational footholds in both Kolkata and Guwahati while exploring growth avenues in major urban consumption hubs, including Siliguri, Patna, Bhubaneswar, Ranchi, and Jamshedpur.
Currently, Nexus maintains an active pipeline of six Grade-A retail properties encompassing nearly 3.6 million square feet across four key cities in eastern India. The long-term objective is to build a regional portfolio capable of delivering more than Rs 600 crore in Net Operating Income (NOI), which would represent over 25 per cent of the trust's total portfolio NOI.
Developer Vision and Portfolio Footprint
Manoj Kayal and Deepak Kayal, promoters of Galaxy Infra Creations Private Limited, stated that the integrated Galaxy Complex was conceived as a destination combining commercial, retail, hospitality, and residential elements to raise urban commercial standards in Guwahati.
Nexus Select Trust's current nationwide footprint comprises 19 Grade-A urban consumption centers covering 10.7 million square feet of gross leasable area across 15 Indian cities. Its broader portfolio includes three hotel properties housing 450 room keys and three commercial office assets spanning 1.3 million square feet. Across its retail network, the REIT hosts approximately 1,100 domestic and international retail brands operating through more than 3,200 individual store outlets.
