Mumbai-based mall developer, Phoenix Mills Limited (PML), is considering new investments and acquisitions aimed at growth, its Managing Director, Shishir Shrivastava said in an earnings call on Saturday.
PML is currently nearing the completion of two funding deals with Singapore’s GIC Private Limited and the Canada Pension Plan Investment Board (CPP Investments). In December 2020, PML signed a term sheet with GIC to sell off a 26 per cent stake in its Mumbai and Pune assets at an enterprise value of ₹5,600 crores. This deal is expected to be completed by the quarter ending in June and will see GIC spending ₹1,000 to 1,400 crores.
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On Friday, CPP Investments and PML confirmed the signing of documents to finalize a joint-venture for a new shopping mall in Kolkata’s Alipore. PML had spent ₹310 crores to purchase 7.48 acres of land from Linde India in Kolkata for this particular project.
CPP Investments will invest ₹560 crores in Mindstone Mall Developers Pvt. Ltd in portions to have a 49 per cent stake in the venture.
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“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.
PML is expected to receive ₹150 crores back through the special purpose vehicle (SPV) after CPP completes the capital investment. When the CPP and GIC deals are finalized, PML will be in a position to have a cash surplus of ₹2,000 crores.
Chairman at Phoenix Mills Limited, Atul Ruia said, “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.”
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