Guwahati: Nexus Select Trust, India’s first listed retail Real Estate Investment Trust (REIT), is set to make its entry into the Northeast with a Rs 1,600-crore mixed-use development in Guwahati, as part of its broader expansion strategy across eastern and northeastern India.
The company on Wednesday announced plans to acquire a 100% stake in the upcoming Galaxy Complex at Beharbari in Guwahati. The project will feature Nexus Galaxy Mall, a 5 lakh square feet Grade-A urban consumption centre, along with a 164-key Hyatt Regency hotel.
Developed by Galaxy Infra Creations Private Limited, the project will be acquired by Nexus Select Trust after construction is completed and the required regulatory approvals are obtained.
The Guwahati project marks the first step in Nexus’ wider plan to strengthen its presence in key consumption markets across eastern and northeastern India. The company has identified Kolkata, Guwahati, Siliguri, Patna, Bhubaneswar, Ranchi and Jamshedpur as priority markets for expansion.
Nexus Select Trust sees Guwahati as a strategic entry point into the wider Northeast, describing the city as the commercial gateway to the region’s eight states and a market serving a population of more than 50 million.
The company said Guwahati has developed into the Northeast’s leading commercial and consumption hub, supported by urbanisation, increasing household incomes and rising demand for organised retail and premium brands.
Despite this growth, the city remains relatively underserved in Grade-A retail space, according to the company, creating an opportunity for a large organised retail and entertainment destination.
The proposed Galaxy Complex is located within a dense and relatively affluent catchment area. Nexus estimates Guwahati’s population at more than two million, with a per-capita income of around $7,000. The city is also estimated to contribute nearly 45% of Assam’s Gross State Domestic Product.
With the proposed investment, Nexus will have operations in both Kolkata and Guwahati, which it identifies as two important consumption markets in eastern India.
The Guwahati investment forms part of a broader East India expansion rather than being a standalone Northeast project.
Nexus currently has a pipeline of six Grade-A retail assets covering approximately 3.6 million square feet across four major cities in eastern India. The company aims to develop an East India portfolio capable of generating more than Rs 600 crore in net operating income (NOI) and contributing over 25% of the NOI of its existing portfolio.
“This acquisition translates our stated ambition for East and Northeast India into action,” said Dalip Sehgal, Executive Director and CEO of Nexus Select Trust.
Sehgal described Guwahati as a natural gateway to the Northeast, citing the city’s expanding consumption base, demand for domestic and international brands and limited availability of Grade-A retail infrastructure.
The company said the expansion also reflects a shift from its earlier focus on acquiring established operating assets towards selectively pursuing development opportunities in high-growth consumption markets.
The mall and hotel are being acquired for a combined consideration of Rs 1,600 crore. Nexus said the transaction implies an acquisition cap rate of 8.25-8.50% for the mall and an EBITDA multiple of 11.5-12.5 times for the hotel.
The payment will be made once construction is completed and the necessary approvals have been secured.
Nexus plans to finance the transaction through approximately 40% debt, with the remaining amount expected to come through fresh unit issuance and unit swaps. The final funding structure will be determined at the time of closing.
The company expects the acquisition to be accretive to both net asset value (NAV) and distribution per unit (DPU).
Following the acquisition, Nexus expects its loan-to-value ratio to remain below 20%, leaving room for additional borrowing to support future expansion.
The proposed development will give Nexus a foothold in a market where organised Grade-A retail remains comparatively limited, while adding to Guwahati’s growing retail and hospitality infrastructure.
Nexus currently owns 19 Grade-A urban consumption centres with a gross leasable area of 10.7 million square feet spread across 15 cities. Its portfolio also includes three hotels and three office assets.
Across its retail properties, the company has around 1,100 domestic and international brands operating through more than 3,200 stores.
The Galaxy Complex is expected to add a major organised retail and hospitality destination to Guwahati while strengthening Nexus’ access to consumers from across the Northeast.
Galaxy Infra Creations promoters Manoj Kayal and Deepak Kayal said the project was conceived as a mixed-use destination bringing together retail, hospitality, commercial and residential components.
The development will combine Nexus’ retail operations with Hyatt’s international hospitality expertise, they said.
The Guwahati investment represents Nexus Select Trust’s first under-construction development transaction in the Northeast and its second such transaction since its listing. It also forms part of the company’s larger effort to establish a sizeable retail presence across eastern and northeastern India.