By Anuran Sadhu

BENGALURU, Nov 14 (Reuters) - Blackstone-backed Nexus

Select Trust plans to double its shopping centre

portfolio in India over the next five years, as it bets on

rising demand in smaller cities, a senior executive at the firm

told Reuters.

The Mumbai-based firm currently operates 19 malls across

India. Nexus, predominantly operates properties in South and

Western India with 13 malls in the two regions, aims to expand

its portfolio in the east, where it only has one mall.

Despite the rapid growth of online shopping platforms,

Indian consumers, even outside the big cities, continue to visit

shopping malls, favoring branded retail outlets.

"We are looking to double our portfolio to anywhere between

30 to 35 (malls) in five years," said Pratik Dantara, chief

investor relations officer and head of strategy.

Nexus sees smaller cities as an attractive opportunity due

to lower competition and rising spending power, Dantara said,

adding the company's upcoming projects will be split roughly

equally between metros and smaller urban centres.

Rival Forum Malls, the retail arm of Prestige Group

, told Reuters in September it plans to launch 14 new

malls across major Indian cities by 2029.

Nexus will fund its expansion mainly through debt and may

pursue an equity raise. The company, which has about $546.1

million in debt, plans to nearly double that to finance new

acquisitions.

Debt fundraising by India's asset-backed investment trusts

has been on the rise, and are expected to keep growing after

exceeding $2 billion in the first half of 2025, as falling

interest rates fuel investor demand.

Nexus, which became India's first listed retail REIT in

2023, stands to benefit from a regulatory shift that will make

it eligible for major indexes and attract passive inflows,

allowing mutual funds to include REITs in equity portfolios and

opening the door to greater institutional investment.

($1 = 87.8950 Indian rupees)

(Reporting by Anuran Sadhu in Bengaluru)