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Nexus Select Mall Management, as the trustee manager of Nexus Select Trust, has sanctioned the purchase of MBD Neopolis Mall in Ludhiana from AKM Enterprises at an enterprise value of INR 4,900 million. The deal was done through Select Infrastructure, a special purpose vehicle (SPV) of the trust. The asset covers a leasable area of about 255,666 sq ft and houses the Radisson Blu Hotel MBD on Ferozpur Road. Ludhiana's retail rental space is competitively priced, with prices usually falling in the range of INR 50 to INR 110 per sq ft per month, while ground floor inline spaces are fetching premiums between INR 160 and INR 280 per sq ft per month across categories. The acquisition is in line with Nexus Select Trust's strategic growth in India's increasing organised retail market.
Nexus Select Mall Management, the managing company of Nexus Select Trust, has approved the acquisition of MBD Neopolis Mall in Ludhiana. The mall is being acquired from AKM Enterprises for an aggregate enterprise value of INR 4,900 million. This acquisition has been made through Select Infrastructure, the trust's appointed special purpose vehicle (SPV). Situated on Ferozpur Road, MBD Neopolis has a total leasable area of around 255,666 sq ft and also houses the Radisson Blu Hotel MBD on its campus. Advertisement
In Ludhiana's retail segment, rents for retail malls normally range between INR 50 and 110 per sq ft per month for both inline and anchor tenants based on the leasable space. Ground level inline units in comparable buildings are charged higher rates ranging from INR 160 to 280 per sq ft per month varying by categories. This purchase is in line with Nexus Select Trust's overall strategy to consolidate its retail portfolio in India. The trust has been making a conscious effort to increase its presence by purchasing and managing prime retail properties in key cities like Delhi, Mumbai, and Bengaluru, highlighting its goal of dominating the organised retail space.
Ludhiana, a major commercial centre in Punjab, has been one of the top destinations for organised retail in the last decade. The city already boasts major properties such as Pavilion Mall and Silver Arc Mall, and the entry of MBD Neopolis adds to its reputation as an emerging retail destination. MBD Neopolis itself is a landmark property in Ludhiana that is renowned for high footfalls and home to premium brands. Its linkage with the Radisson Blu Hotel creates immense value through the synergy between retail and hospitality, a phenomenon that has been picking up momentum in commercial property.
Also, retail rental patterns in Ludhiana and surrounding cities such as Chandigarh have been consistent over the years. This stability, combined with growing demand from national and international brands, indicates the scope for robust leasing activity and good returns for investors. With competitive rentals and consistent market growth, Nexus Select Trust is well-placed to ride the profitability of this acquisition.
The MBD Neopolis Mall acquisition represents Nexus Select Trust's strategic intention to increase its portfolio in India's organised retail market. In acquiring a high-value property located in a business center such as Ludhiana, the trust is well poised to take advantage of increasing retail demand and broaden its revenue sources. The linking of retail and hospitality via the Radisson Blu Hotel complements the property's attractiveness, while Ludhiana's stable rent trends pose the prospect of strong return on investment. This expansion not only reflects the trust's long-term vision for growth but also its position as a leading player in India's changing retail realty market.
Inputs from ET Realty
5th Jun, 2025
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