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Mumbai-basedPhoenix Mills Limited and Canada Pension Plan Investment Board (CPPIB) have announced a joint venture to develop a regional retail centre in Alipore, Kolkata.
CPPIB will commit to invest approximately ₹560 crore in the venture, Mindstone Mall Developers Private Ltd. in tranches, for an ultimate equity stake of 49 per cent.
Mindstone will develop a retail centre with a potential leaseable area of approximately 1 million sq. ft. The target completion date is for the second half of 2024.
Consumption hubs
Atul Ruia, Chairman, Phoenix Mills, said: “...This 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”
Shishir Shrivastava, Managing Director, at The Phoenix Mills Limited, said, “Alipore’s, Kolkata, is a premium neighbourhood and the site is strategically located, surrounded by a dense catchment of residential and office space. We believe that the site’s proximity to established and developing micro-markets, through extensive and well-developed civic infrastructure, provides us with ample opportunity to cater to the region’s significant untapped consumption potential.”
Hari Krishna, Managing Director, Real Estate – India, CPP Investments, said: “With this investment, CPP’s Investments’ equity commitment to multiple ventures with The Phoenix Mills amounts to over ₹2,620 crore. India is one of the most important markets for us in Asia Pacific and a critical part of our long-term strategy.”
₹800 cr for another JV
Phoenix Mills and CPP Investments are also extending their commitments to their other joint venture, Island Star Mall Developers Private Limited(ISMDPL).
Both parties have agreed to invest collectively up to ₹800 crore in it in tranches, in the ratio of their respective shareholdings.
This joint venture was formed in 2017 to develop, own and operate retail-led, mixed-use developments across India. Phoenix Marketcity in Whitefield, Bengaluru, served as the seed asset for the alliance. In addition to owning and operating Phoenix Marketcity, ISMDPL owns, and is currently developing, three retail-led, mixed-use developments at Wakad, Pune; Hebbal Bangalore, and Indore
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