PHOENIX MILLS, GIC TO SET UP INVESTMENT PLATFORM
NEW DELHI: Retail mall developer Phoenix Mills Ltd and sovereign wealth fund GIC have partnered to establish a $733 million (₹5,362 crore) investment platform for retail-led mixed-use assets in India.
“GIC and Phoenix Mills to establish a retail-led mixed-use investment platform in India with an initial portfolio of $733 million,” the company said.
GIC will acquire a significant minority stake in a $733 million portfolio of retail-led mixed-use developments, located in the prime consumption centres of Mumbai and Pune, the company added.
The transaction is subject to relevant regulatory approvals, the filing said.
Meanwhile, in a separate filing, Phoenix Mills said GIC will initially acquire an equity stake of 26.4% in the Phoenix Mills’ subsidiaries by investing an aggregate amount of approximately ₹1,111 crore by way of a combination of primary infusion and secondary purchase of equity shares in the said Phoenix Mills’ subsidiaries.
“The platform is valued at a pre-money enterprise value of ₹5,500 crore. GIC’S stake may further increase to 33-36% in the ... subsidiaries through an additional infusion of up to ₹400 crore within 12-month period from closing,” the company added.
Kishore Gotety, Co-head of Real Estate, GIC said the fund expects strong performance in the Indian retail sector.
“We recognise that the unprecedented global crisis is impacting consumer sentiments and that the necessary lockdown has made it challenging for all businesses, especially those in the retail sector.”
“However, the long-term structural growth that the Indian retail industry continues to offer due to favourable demographics, urbanisation, and the growing middle class will benefit the joint venture,” he added.