Global investment firm Blackstone-sponsored Nexus Select Trust has filed the draft herring prospects with market regulator Securities and Exchange Board of India (Sebi) to launch India's first public issue of retail REIT to raise around USD 500 million (about Rs 4,000 crore), sources said.

Nexus Select Trust has a portfolio of 17 operational shopping malls across 14 major cities, covering about 10 million square feet of area valued at around USD 3 billion. As per the sources, Nexus Select Trust has on Thursday filed the draft herring prospects with the Sebi and is looking to hit the capital market with India's first retail REIT (Real Estate Investment Trust) public issue in the first half of the 2023 calendar year.

The size of the initial public offer (IPO) of Nexus Select Trust REIT will be nearly USD 500 million, they added. This will be the third REIT sponsored by Blackstone. It had earlier launched India's first REIT -- Embassy Office Parks REIT-- and then Mindspace Business Parks REIT.

The REIT, a well-liked instrument globally, was introduced in India a few years ago to attract investment in the real estate sector by monetising rent-yielding assets. It helps unlock the massive value of real estate assets and enables the participation of retail investors. Currently, there are three listed REITs on Indian stock exchanges but all these are leased office assets.

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