In a strategic move underscoring its ambitious inorganic growth strategy, Nexus Select Trust, India’s first publicly listed retail Real Estate Investment Trust (REIT), announced the completion of its acquisition of the MBD Complex in Ludhiana on 7 May 2025. This marks the second major acquisition post its stock market debut and the fifth in North India, further reinforcing its leadership in the consumption-driven real estate landscape.
MBD Complex Ludhiana – Acquisition Details
MBD Complex acquisition was carried out via Select Infrastructure (SIPL), a special purpose vehicle (SPV) under the Nexus Select Trust umbrella. The total enterprise value (TEV) of the transaction stood at INR 531 crore, which includes:
- INR 490 crore as purchase consideration,
- INR 10 crore as stamp duty,
- Remaining towards closing costs and a provision for capital expenditures for hotel renovation and mall upgrades.
The purchase was financed entirely through the Trust’s maiden issuance of sustainability-linked bonds at a coupon rate of 7.2%, resulting in a post-acquisition Loan-to-Value (LTV) of just 18%, showcasing strong financial prudence and balance sheet discipline.
About the MBD Complex
The MBD Complex, a premier Grade-A urban consumption centre located on Ferozepur-Ludhiana Road, spans 3 lakh square feet of leasable retail area and includes a 96-key Radisson Hotel. It sits within one of Ludhiana’s most affluent residential pockets and boasts a 95% occupancy rate.
Key attributes include:
- Tenancy by marquee brands such as Sephora, Armani Exchange, Calvin Klein, Da Milano, and Iconic.
- 2/3rd of the leasable space is allocated to high-consumption sectors like Apparel & Accessories, Beauty & Personal Care, and Food & Beverage.
- Average monthly tenant sales of INR 20 crore, reflecting the asset’s strong consumer traction.
On the hospitality front, the Radisson Hotel operates at a 64.4% occupancy rate with an Average Room Rate (ARR) of INR 6,850, with projections indicating a 10–12% ARR increase following planned strategic capex and operational synergies.
Financial Highlights & Accretion Metrics
This acquisition is not just strategic—it’s financially astute. Key metrics include:
- A ~14% discount to independent valuation.
- Stabilized Retail Net Operating Income (NOI) of INR 37 crore and Hotel EBITDA of INR 12.5 crore projected for FY26.
- An expected INR 12 crore boost in Net Distributable Cash Flow (NDCF) post-debt servicing.
- NAV accretion of ~INR 0.5 per unit on a proforma basis.
These figures collectively signal strong accretion on NAV and Distribution Per Unit (DPU), a key performance yardstick for REIT investors.
Strategic Significance: Expanding Northern Dominance
This transaction fits squarely into Nexus Select Trust’s blueprint of pan-India expansion anchored in urban consumption growth. With established assets like Nexus Elante in Chandigarh and Nexus Amritsar, the addition of MBD Complex tightens its grip on the North Indian retail and hospitality corridor.
Dalip Sehgal, Executive Director and CEO, stated:
“MBD Complex is a marquee urban consumption centre. With our strong presence already in Chandigarh and Amritsar, this addition strengthens our portfolio and deepens our roots in a strong consumption-driven market like Ludhiana. The acquisition aligns perfectly with our long-term vision to build a resilient, pan-India platform anchored in growth, sustainability, and consumer delight.”
The Trust plans to:
- Re-brand and premiumize the retail asset.
- Roll out its Nexus One App to integrate digital experiences.
- Launch curated campaigns and events, including those with brand ambassador Ayushmann Khurrana.
- Leverage MTM (mark-to-market) rent potential of expiring leases (~24% area up for renewal in FY26).
- Execute strategic capex on the hotel for margin optimization.
Market Implications
In a city where no major Grade-A retail supply is expected for the next five years, the MBD Complex acquisition offers Nexus a strategic first-mover advantage. Comparative data shows MBD Mall:
- Achieves higher in-place rents (INR 114 psf/month) than its closest competitor (INR 55–60).
- Enjoys a higher trading density (INR 1,000 psf/month) compared to competing malls (INR 750–800).
- Maintains occupancy near full levels (95%), a testament to its consumer magnetism.
The Trust’s demonstrated ability to upgrade, reposition, and rebrand is evident from success stories at Nexus Elante and Nexus Amritsar, which have seen 11% and 15% CAGRs in EBITDA and NOI respectively, along with significant improvements in footfall, tenant mix, and ARR.
Portfolio Strength Post-Acquisition
Following this acquisition, Nexus Select Trust’s portfolio now includes:
- 19 Grade-A consumption centres across 15 cities.
- Total Gross Leasable Area (GLA) of 10.6 million sq. ft.
- 450 hotel keys across three assets.
- Over 3,000 stores housing 1,000+ brands, both domestic and international.
Despite the expansion, the REIT maintains a conservative financial structure, with an LTV of 18%, and a debt headroom exceeding USD 1 billion, keeping ample room for future acquisitions.
Conclusion
With the completion of the MBD Complex acquisition, Nexus Select Trust has signaled to the market that its post-listing trajectory is defined not by passive yield management but active portfolio expansion, disciplined capital allocation, and value accretion.
As urban India continues to shift towards organized retail and consumption-centric real estate, the REIT’s robust fundamentals, strategic positioning, and execution capability make it a compelling play in the listed real estate space.
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