Island Star Mall Developers, investment alliance of Phoenix Mills and Canada Pension Plan Investment Board, has acquired a land parcel in Hebbal, Bengaluru for ₹ 650 crore for retail-oriented development. This investment comes just six months after the alliance bought additional land in Pune for ₹ 21.25 crore.

The site at Hebbal has development potential of approximately 1.81 million square feet. “In the initial phase, ISMDPL would develop at least one million square feet as premium retail development,” the company said in a statement in Mumbai on Saturday.

“Bengaluru is among the most preferred cities for retailers given the high percentage of the population in the working age group. In coming years, this micro market will witness a rapid rise in consumption levels and our second Phoenix Market City in Bengaluru will be a preferred retail, entertainment and commercial destination,” Shishir Shrivastava, Joint Managing Director, PML, said.

The catchment area around Hebbal has seen the launch of over 40,000 residential units since 2014. Moreover, the area has an occupied office space of over 20 million square feet which translates to a working population of over 2.5 lakh. The catchment area also has one of the lowest per capita retail spaces in the city.

With land parcel acquisitions in Pune, which is under development, and now in Bengaluru, the PML-CPPIB investment alliance has already committed significant portion of the total equity funds in ISDMPL within a year of forming the alliance, Shrivastava added.

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