Nexus Reit Eyes Kolkata's Diamond Plaza: A Strategic Move in the Retail Sector
Nexus Select Trust, backed by Blackstone, is in advanced talks to acquire Kolkata's Diamond Plaza, adding to its growing portfolio of 19 malls. The move aims to capitalize on the increasing demand for premium retail spaces in India.
Nexus Select TrustBlackstoneRetail Real EstateDiamond PlazaKolkataReal Estate MumbaiSep 20, 2025
The move is linked to the company’s focus on the organized and branded consumption segment, where per capita usage remains low. One of the people familiar with the developer’s plans, speaking on the condition of anonymity, stated, “They feel there is a market retail penetration per capita very low and they are trying to bridge that gap.”
The gap between demand for mall space and available supply has widened for a third straight year. According to data by Anarock Research, 6.5 million sq. ft. was leased against a new supply of 1.1 million sq. ft. in 2024. This reduced vacancies and pushed rentals higher as brands target affluent shoppers seeking premium experiences. The property consultant estimates that over 16.6 million sq. ft. of new grade A mall space will enter the top seven cities during 2025 and 2026.
Diamond Plaza, which opened in September 2012, is a neighborhood shopping center in North Kolkata. Its tenants include Pantaloons, Trends, Max, Reliance Digital, W, and Manyavar. A spokesperson for Nexus Select Trust commented, “We don’t comment on market speculation. As of now, Nexus Select Trust does not have any physical presence in Kolkata.”
Nexus Select Trust, incorporated in August 2022, is India’s first publicly listed REIT. Its tenants typically include international and premium brands such as Zara, H&M, Apple, Lifestyle, Cinepolis, and Starbucks. The company already operates malls in Amritsar, Ludhiana, Delhi, Indore, Navi Mumbai, Pune, Hyderabad, Bengaluru, and Bhubaneswar.
Pratik Dantara, head of strategy at Nexus Select Trust, highlighted the company’s robust acquisition pipeline during its June quarter earnings call. “We have got around 10 plus assets in the pipeline across different states in India. Multiple conversations are going on, both on the Asset Acquisition as well as a couple of conversations on the greenfield development. We are hopeful that once the Hyderabad acquisition closes, we will be able to close a few more in this financial year.”
Typically, Blackstone acquires the assets, which are then added to the Nexus portfolio. The Reit is also evaluating multiple deals across the east. “There are discussions going on for a potential buyout of malls and shopping centers in Kolkata, as well as smaller cities such as Ranchi and Jamshedpur,” said the second person in the know, who didn’t wish to be named.
In fiscal 2025, Nexus Select Trust’s revenue from operations stood at ₹2,282.9 crore, up 19% from the previous year. It had a total area under lease of 1.1 million square feet with a 97.2% occupancy rate. These properties house over 1,000 domestic and international brands in more than 3,000 stores.
In February, Nexus announced the acquisition of the MBD Neopolis mall and its attached Radisson Blu Hotel in Ludhiana for ₹490 crore. It also closed the acquisition of Vega City mall in Bengaluru for ₹913 crore. In 2024, it announced plans to acquire three grade-A malls in Hyderabad from Larsen and Toubro (L&T) for ₹1,000 crore.
Meanwhile, eastern India, beyond Kolkata in particular, has seen little interest from investors and grade-A mall developers so far. Nexus Select Trust’s rival Phoenix Mills, which boasts a retail portfolio with 12 operational malls, is building its first property in Kolkata.
In July, Blackstone Group acquired South City Mall in Kolkata for ₹3,250 crore from South City Projects in the largest retail asset buyout in recent years.
Frequently Asked Questions
What is Nexus Select Trust?
Nexus Select Trust is a Blackstone-backed retail real estate investment trust (Reit) incorporated in August 2022. It is India’s first publicly listed REIT and operates a portfolio of 19 malls across various cities.
Why is Nexus Select Trust interested in acquiring Diamond Plaza in Kolkata?
The acquisition aligns with Nexus Select Trust’s strategy to expand its presence in the organized and branded consumption segment, where per capita usage of retail spaces remains low. The move aims to capitalize on the strong demand for grade-A malls in India.
What is the current market demand for mall space in India?
The demand for mall space in India has been growing, with a significant gap between demand and supply. According to Anarock Research, 6.5 million sq. ft. was leased against a new supply of 1.1 million sq. ft. in 2024, leading to higher rentals and reduced vacancies.
What are some recent acquisitions by Nexus Select Trust?
Nexus Select Trust has recently acquired the MBD Neopolis mall and its attached Radisson Blu Hotel in Ludhiana for ₹490 crore, and the Vega City mall in Bengaluru for ₹913 crore. It also plans to acquire three grade-A malls in Hyderabad from Larsen and Toubro (L&T) for ₹1,000 crore.
How does the acquisition of Diamond Plaza fit into Nexus Select Trust’s overall strategy?
The acquisition of Diamond Plaza fits into Nexus Select Trust’s strategy to expand its portfolio and enhance its presence in key markets. It also aligns with the company’s focus on high-demand, premium retail spaces in major cities and smaller towns in India.
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