Blackstone-backed Nexus Select Trust is doubling down on premiumisation across malls with plans to replace underperforming large-format retailers with high-value brands, even as it pursues acquisitions to expand its portfolio.
This comes after the trust posted a strong quarter, with consumption growing 17 per cent, footfalls rising 5 per cent, net operating income (NOI) increasing 11 per cent and occupancy reaching 96 per cent. Distribution per unit also rose 10 per cent. “We’re seeing premiumisation play out over the next two to three years,” Pratik Dantara, Chief Investor Relations Officer and Head of Strategy, told businessline. “We’ll be doubling down on categories such as watches, beauty, jewellery, eyewear and accessories, which offer higher trading densities and stronger long-term economics.
Hypermarkets, which contributed around 7 per cent of portfolio sales two to three years ago, now account for about 4 per cent and recorded just 1 per cent growth during the quarter. Nexus plans to continue optimising these large spaces in favour of faster-growing premium categories.
The REIT also remains on the acquisition trail. Dantara said the previously announced Diamond Plaza acquisition is expected to close over the next month, while two more transactions currently under due diligence are likely to be announced within the next 60 days. The company expects another potential acquisition later in the financial year as it continues to evaluate a healthy pipeline of assets.
Despite concerns over macroeconomic conditions, the company said it has not seen any meaningful slowdown in discretionary spending among its target consumers. July consumption has continued to register double-digit growth, albeit lower than the 17 per cent recorded in the June quarter, providing confidence ahead of the festive season.
Looking ahead, Nexus expects premiumisation to vary across markets. While metro malls will see a greater concentration of premium and luxury brands, value-led centres in tier-II and tier-III cities will continue to cater to aspirational consumers, with the premium mix increasing gradually over time.
Published on August 4, 2026
