Mall developer Phoenix Mills Ltd (PML), which is closing two funding deals with Singapore’s GIC Pte Ltd and Canada Pension Plan Investment Board (CPP Investments), will look at acquisitions and fresh investments for growth, said Shishir Shrivastava, managing director, PML.
PML signed a term sheet in December with GIC to sell 26% stake in select assets in Pune and Mumbai at an enterprise value of ₹5,600 crore. The deal, which is in the final stage of due diligence and will be completed in the June quarter, will see GIC bringing in ₹1,000-1,400 crore.
PML and CPP Investments on Friday night said they have signed definitive documents for a new joint venture to develop a shopping mall in Kolkata’s upscale Alipore area. CPP Investments has committed an investment of about ₹560 crore in Mindstone Mall Developers Pvt. Ltd in tranches, for an ultimate equity stake of 49%.
“We are looking at growth and acquisition opportunities under the potential joint venture with GIC and separately as well. We will also invest ₹1,000 crore in a new project in Lower Parel post approvals,” Shrivastava said in an analyst call on Saturday.
PML had paid ₹310 crore earlier this year to acquire 7.48 acres in Kolkata from Linde India for its upcoming mall.
The Mumbai-based developer will receive about ₹150 crore back from the special purpose vehicle (SPV) once CPP infuses the capital.
After the GIC and CPP deals are concluded, PML would have around ₹2,000 crore cash surplus in hand.
“The (CPP) investment bears testament to the attractive long-term prospects of our robust business model of creating destination consumption hubs in key cities of India. With this asset, we are well on track to more than double our operational retail portfolio by 2024,” said Atul Ruia, chairman, Phoenix Mills.
