Phoenix Mills Ltd expects an internal rate of return of over 15 per cent on its forthcoming Kolkata project.

The company is likely commence sales next year at ₹15,500-16,500 per square feet (sqft) and thereafter sees a 10 per cent annual increase for the next eight years, until the entire project is sold out.

The company, through a subsidiary, acquired the 5.5 acre land parcel in Alipore, Kolkata for ₹414.3 crore. It plans to set up a residential project with 325-350 premium homes, spread over 10 lakh square feet with a potential gross sales value of over ₹2,300 crore.

The approvals are expected to take 12-18 months after which it would start construction. It also expects to simultaneously commence booking of units .

The entire project is expected to be sold out in the next 7-8 years, with an annual sales of about 1-1.5 lakh sqft. The project would reach completion by 2028-29.

Phoenix Mills is primarily a mall developer and operator, but has built residential projects in some select locations. It has a residential project in Bengaluru with a saleable area of 35 lakh square feet.