The price band for Blackstone-sponsored Nexus Select Trust’s initial public offering of units is likely to be in the range of ₹95-100, sources said.

The real estate investment trust with a portfolio of 17 malls, the first such REIT in the country, will be announcing the price band for its forthcoming IPO on May 3.

The REIT is scheduled to list on May 19 and subscriptions to its units will be open May 9-11. It is the fourth REIT to be listed in India after Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield Real Estate Trust, all of which are focused on office assets.

The size of the IPO is ₹3,200 crore of which ₹1,400 crore will be a fresh issue and the remaining an offer for sale by principal sponsor Blackstone and other shareholders.

Occupancies in malls across major urban centres are showing a rising trend and in many places, they have surpassed pre-Covid levels. A report by Crisil last month said that buoyant retail sales and improved rental yields are expected to lift the revenue of mall operators by 7-9 per cent in FY24.

“That would be tantamount to 125 per cent of pre-pandemic, or fiscal 2020, revenue,” it said.

It said that high occupancy levels, solid profitability backed by cost-optimisation measures, and strong balance sheets will keep the credit risk profiles of mall operators healthy this fiscal.

Blackstone’s retail REIT is banking on this resurgence in consumer demand to sustain footfalls. The REIT has already seen significant rental spreads on renewals in its malls and according to Crisil, mall operators are likely to get contractual rent escalation of 4-5 per cent in the current year as well.