Blackstone-backed Nexus Select Trust Acquires Diamond Plaza in Kolkata for Rs 347 Crore

Nexus Select Trust Acquires Diamond Plaza Shopping Mall in Kolkata

Nexus Select Trust, a retail-led real estate investment trust (REIT) backed by the Blackstone Group, has signed a deal to acquire the Diamond Plaza shopping mall in Dumdum, Kolkata from the Diamond Group for Rs 347.50 crore. The transaction is expected to close in the next four months, according to a regulatory filing.

The fully-leased property, located on the arterial Jessore Road in Kolkata's northern suburbs, has a gross leasable area of around 2,44,000 square feet, and has been operational since 2011. The current landlords charge a warm-shell per-square foot rent of around Rs 124 per square foot per month, similar to market rents in the area.

The Diamond Group, owned by the Kolkata-based Kajaria family, including Vivek Kajaria and Shreyans Kajaria, is a significant player in Kolkata's real estate market, with a presence in both residential and commercial real estate. Nexus Select Trust has stated that the acquisition, its first in Kolkata, is intended to expand its presence in eastern India. The REIT has a presence in Odisha's capital Bhubaneswar, through the Nexus Esplanade mall.

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Nexus Select Trust's portfolio consists of 19 malls across India, in both Tier-I and Tier-II markets. The trust has focused on metropolitan cities to grow its 11 million square feet-portfolio, but has also expressed interest in growing its presence in select Tier-II markets, particularly in southern and eastern India. These cities include state capitals, as well as cities such as Indore, Udaipur, Mysuru, and Mangaluru, where Nexus currently has a presence through various properties.

The acquisition is a strategic move by Nexus Select Trust to expand its presence in eastern India, and to tap into the growing consumer base in select Tier-II markets. The transaction is expected to close in the next four months, and will be closely watched by investors and analysts in the real estate sector.