Vanguard Group Invests Rs 158 Crore in Nexus Select Trust Units

Investment management firm Vanguard Group acquired over 1.14 crore units in Nexus Select Trust for Rs 158 crore through open market transactions on Wednesday. This move coincided with Morgan Stanley selling its stake in the company. Nexus Select Trust is India's first real estate investment trust (REIT) focused on retail properties.

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Vanguard's Significant Purchase

According to bulk deal data from the National Stock Exchange (NSE), Vanguard Group, based in the US, bought 1,14,50,476 units of Nexus Select Trust. This purchase represents a 0.75 per cent stake in the REIT firm. The units were acquired at an average price of Rs 138.42 each, resulting in a total transaction value of Rs 158.49 crore.

Morgan Stanley's Transactions

Meanwhile, Morgan Stanley Asia Singapore sold 78.41 lakh units of Nexus Select Trust at an average price of Rs 138.33 per unit, amounting to Rs 108.47 crore. Additionally, Morgan Stanley also purchased 3,003 units of the REIT firm. Details about other sellers involved in these transactions were not available.

Recent Market Movements

Nexus Select Trust units saw a rise of 1.16 per cent, closing at Rs 138.01 per unit on the NSE. Last week, global investment firm Blackstone sold 31.55 crore units in Nexus Select Trust for approximately Rs 4,354.90 crore as part of its strategy to monetise its real estate portfolio.

Investments by Other Firms

Domestic mutual funds such as ICICI Prudential Mutual Fund and HDFC Mutual Fund acquired units of Nexus Select Trust. Among foreign entities, US-based financial services company Wells Fargo and Morgan Stanley also bought stakes in the REIT firm. Additionally, French asset management firm Carmignac invested in Nexus Select Trust.

Nexus Select Trust's Portfolio

Nexus Select Trust's portfolio includes 17 shopping malls with a gross leasable area of 9.9 million square feet across 14 cities. The portfolio also comprises two complementary hotel assets with a total of 354 keys and three office assets with a gross leasable area of 1.3 million square feet.

These transactions highlight the ongoing interest and activity in India's real estate investment trust market, particularly within retail properties.