Nexus Select Trust Expands Retail Presence at Elante Mall
Nexus Select Trust has completed a significant acquisition: 60,000 square feet of retail space at the Nexus Elante Complex in Chandigarh, with an enterprise value of Rs 253.7 crore. This deal, valued at Rs 230.7 crore, 8% less than the independent valuation, includes stamp duty, closing costs, and capital expenditure.
Prime Location and Financial Strategy
The acquired space occupies ground and first floors, strategically located next to the main mall, transforming a vacant high-street frontage into a profitable asset. They financed this smartly: Rs 202 crore through commercial paper at a 6.2% interest rate, with the remainder funded from cash reserves. After this acquisition, the loan-to-value ratio remains at 18%, leaving around $1 billion in debt capacity for future projects.
Elante spans 1.3 million sq ft in the heart of Chandigarh, attracting shoppers from Punjab, Himachal Pradesh, and Jammu & Kashmir. The ground and first floors have enjoyed near-full occupancy for five years, supported by leading brands and a significant waitlist.
Tapping into High-Value Segments
This new addition targets luxury fashion, premium food and beverage outlets, and high-end electronics, sectors in demand for larger spaces in Tricity. The trading density is impressive, boasting a 9% compound annual growth rate (CAGR), with rentals averaging Rs 310 per sq ft monthly for similar locations.
Key highlights include:
- High Visibility: Positioned facing the courtyard, enhancing foot traffic and customer dwell time.
- Consistent Growth: Rental CAGR of 7% over the past seven years.
- Market Leadership: Few competitors can rival Elante's size in premium retail.
- Tenant Interest: Waitlists indicate quick leasing potential.
Significance for Investors and Consumers
As India’s top retail REIT, Nexus is deepening its presence with this move. It boosts asset quality, draws premium tenants, and builds long-term value. In Chandigarh, Elante is fast shaping up as a standout retail hub, catering to rising demand with limited luxury supply.
Recent Q2 FY2026 results support this strategy, with revenue rising 13.33% year-on-year to Rs 652.10 crore, and net profit climbing 20.05% to Rs 132.30 crore. This acquisition is expected to drive further growth as previously unused spaces become vibrant.
In a landscape starved for premium retail opportunity, Nexus is emerging as a leader. Investors are keenly observing, and this could inspire similar expansions across the country.