As Blackstone Acquires South City Mall, Nexus Select Trust May See Portfolio Expansion to 20 Malls Across 16 Cities, 11.65 Mn Sq. Ft. GLA
In one of the largest retail real estate deals of the year, Blackstone Group has acquired South City Mall, Kolkata’s premier shopping destination, for approximately ₹3,250 crore. The deal marks Blackstone’s first significant retail investment in Eastern India, expanding its already substantial footprint in the country’s organised retail sector.
While there’s no official confirmation yet of its inclusion in the Nexus Select Trust portfolio, previous Blackstone acquisitions in India — including Select Citywalk, Elante, and the Prestige malls — were eventually consolidated under Nexus.
Should the mall be added, Nexus Select Trust’s portfolio would expand to 20 malls across 16 cities, with a total Gross Leasable Area (GLA) of 11.65 million sq. ft.
South City Mall: A Retail Landmark
Launched in 2008 by a consortium of Kolkata-based developers, South City Mall spans 1 million sq. ft. on Prince Anwar Shah Road. Anchored by a mix of premium Indian and international brands, a 1,400-seat food court, and a loyal catchment, the mall reportedly clocks annual turnover of ₹1,800 crore with weekend footfalls exceeding 2 lakh.
The asset is expected to benefit from Blackstone’s global retail expertise and operating leverage. Market sources indicate the acquisition was structured through a mix of equity and financing, valuing the mall at a benchmark-setting ₹32,500 per sq. ft.
Strategic Implications for Blackstone
- Eastern Gateway: This marks Blackstone’s first major retail asset in East India. Earlier, in 2018, it had acquired a majority stake in Esplanade One, Bhubaneswar (developed by Forum Group).
- Top-Tier Asset: South City is among India’s most profitable malls in terms of revenue per sq. ft.
- REIT Enhancement: The asset is expected to strengthen Nexus Select Trust’s earnings and investor appeal, if included.
- Long-Term India Bet: This deal aligns with Blackstone’s continued confidence in India’s consumption-led growth trajectory.
Nexus Select Trust: Now 20 Malls Strong
If South City Mall joins the fold, Nexus Select Trust would have:
- 20 malls
- Presence in 16 cities
- 65 million sq. ft. of GLA
Already the largest retail platform in India, Nexus manages a portfolio spanning metros and Tier 2 cities. In FY24–25, it reported 130+ million footfalls, ₹12,400 crore in tenant sales, and 97% occupancy.
A REIT With Momentum
Under the leadership of Dalip Sehgal, Nexus Select Trust has been reshaping post-pandemic retail in India by focusing on:
- Experiential formats(entertainment, F&B, co-working)
- Optimised tenant mix
- Digitally driven engagement
- Strong ESG practices
With Blackstone’s continued support, Nexus is actively pursuing Tier 1 and high-density Tier 2 city assets, backed by sustainable NOI and consumer loyalty.
Outlook: India as a Global Retail Play
India’s organised retail footprint is projected to exceed 160 million sq. ft. by 2027, fuelled by urbanisation, rising incomes, and aspirational spending.
With the acquisition of South City Mall, Blackstone signals its confidence in East India’s retail potential, while Nexus Select Trust stands poised to further consolidate its position as India’s most balanced and diversified retail platform.
