Nexus select Trust in advanced stage of deal to take over Axis Mall of Kolkata

Nexus Select Trust, backed by Blackstone, is in negotiations to acquire Axis Mall in Kolkata. However, the deal may face challenges as the mall is largely strata-owned, and a section of it, previously purchased by disgraced jeweler Mehul Choksi, has been seized by enforcement authorities.

In an effort to recover debts from fugitive Mehul Choksi, State Bank of India and Punjab National Bank are currently valuing and planning to sell his properties, which include a portion of Axis Mall. According to sources, Nexus Select is interested in purchasing this space.

The acquisition of Axis Mall would require a unique structure due to its lack of a single owner or promoter.

While the exact transaction value remains uncertain, sources estimate the mall's worth at approximately Rs.700 crore, factoring in its total area and the presence of well-known brands. The 80,000 square feet owned by Mehul Choksi alone is valued at around Rs.100 crore.

Choksi's Gitanjali Group of Companies purchased this space in 2011 and later leased it to Landmark Group for its Lifestyle and Home Centre stores.

Axis Mall, with a built-up area of 5 lakh square feet, spans three blocks in Kolkata's emerging Newtown area and has been operational for around 15 years. Initially developed by Bengal Peerless Housing Development Company, the mall's spaces were sold to investors or retailers, who either leased them out or utilized them for their own retail businesses.

Aside from the fourth floor, which accommodates the multiplex Bioscope, Peerless is currently limited to overseeing the facilities while awaiting the establishment of an association or society to take charge of the mall's management.

Nexus Select, boasting a portfolio of 17 malls totaling nearly 10 million square feet, is pursuing growth through acquisitions. Their standard approach involves acquiring properties, enhancing them through strategic capital expenditures, and subsequently repositioning these assets by elevating the brand offerings.

Nexus Select has already finalized the acquisition of three malls in Hyderabad, owned by L&T, covering a total area of 1 million square feet, and is currently awaiting regulatory approvals. Additionally, 8 lakh square feet of assets are under due diligence, with ongoing discussions for another five retail properties, according to its most recent investor presentation.