The Phoenix Mills Limited and Canada Pension Plan Investment Board today announced a new joint venture to develop an office-led mixed-use asset in Lower Parel, Mumbai. The asset forms part of a larger mixed-use development at Phoenix Palladium, Mumbai.

CPP Investments will commit to investing approximately ₹1,350 crore in tranches, for an ultimate equity stake of 49 per cent in the entity, known as PCREPL, that will own the asset. With the funds invested by CPP Investments and PML, PCREPL will develop office space with a possible leasable area of about one million sq. ft. and flagship retail space with a potential leasable area of approximately 0.2 million sq. ft. The target completion date for the development is 2026.

The office-led mixed-use asset will complement the existing retail development at Phoenix Palladium, Mumbai and St. Regis, Mumbai hotel.

Commenting on the deal, Atul Ruia, Chairman at The Phoenix Mills Limited, said: " Our upcoming office spaces will be designed with the aim to cater to global clientele with inspiring architecture and design along with open, naturally lit green spaces that will provide an air of sophistication and openness. This unique environment and culturally enriching spaces will be a perfect blend of formal and casual workspaces. We are confident that Lower Parel will cement its pole position as the central business district of choice with the various infrastructure initiatives underway and we are confident of strong office demand in the coming years. "

PML and CPP Investments' first joint venture, Island Star Mall Developers Private Limited (ISMDPL), was formed in 2017 to develop, own and operate retail-led, mixed-use developments across India. Phoenix Marketcity in Whitefield Bangalore 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. In May 2021, a second joint venture between PML and CPP Investments was formed to develop a regional retail centre in Alipore, Kolkata.

Hari Krishna, Managing Director, Real Estate – India, CPP Investments, said: " As a longstanding investor in India, this investment cements our already strong and deep presence in the country's fast-growing property sector, and will deliver steady, long-term returns for CPP contributors and beneficiaries."

Cumulatively, CPP Investments' equity commitment in multiple joint ventures with PML now stands at approximately Rs 4100 crore (C$709 million).