Comments
Canada Pension Plan Investment Board (CPPIB) and mall developer Phoenix Mills’ strategic investment platform Island Star Mall Developers (ISMDPL) has acquired a land parcel in Pune for Rs 161 crore.
The site is the platform’s first acquisition and is located in Wakad, Pune, near Hinjewadi Junction, off the Mumbai-Pune bypass.
The acquired land has a potential develop-able area of approximately 1.6 million square feet, which will allow for a planned premium retail development of one million square feet approx.
“The West of Pune is one of the fastest developing residential and commercial hubs in Pune and yet lacks large-scale retail, entertainment, and food and beverage options under one roof. We are excited to have found an ideal land parcel in Wakad where we will develop our second Phoenix MarketCity in the city. We look forward to working with CPPIB to acquire or develop additional high-quality retail assets across India’s top cities,” said Atul Ruia, Jt. MD, The Phoenix Mills Ltd.
Pune is the eighth largest city in India with a population of 5.75 million. The proposed new mall will be the largest retail destination in West Pune and will cater to the burgeoning middle-to-high income population spread across key residential and commercial areas.
“This acquisition helps deliver on our strategy of expanding our Indian retail portfolio with Phoenix Mills, an aligned, best-in-class partner. Pune’s attractive demographic and economic growth profile combined with an under-supplied retail market makes this an ideal location for a high-quality retail and entertainment destination and is well suited to CPPIB’s long-term investment horizon. We look forward to expanding our platform with Phoenix Mills across other cities,” said Andrea Orlandi, Managing Director, Head of Real Estate Investments – Europe, CPPIB.
In April 2017, PML and CPPIB created ISMDPL as an investment platform to develop, own and operate retail-led, mixed-use developments across India.
ISMDPL holds Phoenix MarketCity Bengaluru, which was PML’s contribution to the platform and CPPIB agreed to invest up to approximately Rs 1600 crore in multiple tranches, to own up to a 49 per cent stake in the platform. To date, CPPIB has invested Rs 720 crore in ISMDPL and owns 30 per cent in the platform.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.