GIC, Phoenix set up $773-mn JV to invest in malls

Singapore’s sovereign fund GIC and Phoenix Mills (PML) on Wednesday said that they have formed a $733 million joint venture (JV) to set up and operate retail-led mixeduse properties (malls) in the country.

GIC will acquire a significant minority stake in PML’S portfolio of developments in Mumbai and Pune. The assets have a total of 3.4 million sq ft in leasable retail and office space.

PML recently formed a JV with Canada’s CPPIB to set up a mall in Kolkata.

Atul Ruia, chairman of Phoenix Mills, said: “Through this platform with GIC, we intend to jointly explore value‐accretive acquisition opportunities. Proceeds from the transaction received by PML will act as growth capital to both PML and its subsidiaries. We will explore and further enhance our portfolio of annuity income assets.”

Lee Kok Sun, chief investment officer of real estate, GIC, said, with the management capabilities of a leading partner like PML, GIC believes that the JV will generate resilient long‐term returns.

Shishir Shrivastava, managing director (MD) of Phoenix Mills, said: “This investment will ensure the continuity of PML’S business model of developing, owning and operating dominant consumption hubs in tier 1 city‐centric micro‐markets it chooses to be present in.”

Recently, CPPIB and PML have agreed to invest up to ~800 crore in their joint venture ISMDPL in tranches, in the ratio of their respective shareholdings.

The joint venture was formed in 2017 to develop, own and operate retail-led, mixed-use developments across the country.

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 projects at Wakad in Pune, Hebbal in Bengaluru, and Indore.