Phoenix buys mall in Indore
MUMBAI: Mumbai-based retail developer Phoenix Mills Ltd on Friday said it has acquired an under-construction mall at Indore for Rs234 crore—its secondsuchpurchaseinaTierIIcity in less than a month.
Earlier this month, the company announced the acquisition of anunder-construction mall in Lucknow for Rs453 crore.
The Indore property, which hasagrossleasingareaof1.1 million sq. ft, was acquired through Insight Hotels & LeisurePvt. Ltd, a subsidiary of Phoenix Mills, in anauctionconductedbyanasset reconstruction company, the developer said in a filing to BSE.
The company said it would developtheassetasPhoenixMarketCity Indore, which would be operational by the end of fiscal 2021. So far 80% of the construction is complete. The company also plans to develop another 800,000 sq. ft of gross leasing area at a later stage, it said . “Indore is anunder-servedmarketforquality retail andentertainmentexperiences while the population has ahighpropensitytospend. Given that Indore does not have large formatretail centres andhaslim- ited options to socialise, Phoenix MarketCityIndorewillbeamarquee retail destination that Indore deserves,” said Shishir Shrivastava, joint managing director, Phoenix Mills.
The acquisition is in line with the company’splantoexpandits retail portfolio to 11-12 million sq. ft fromtheexisting6millionsq. ft, hesaid. “Withacquisitionsoftwo land parcels in Pune and Bengaluru andtwobrownfieldacquisitions in LucknowandIndore, we will addapproximately4 million sq. ft of retail space to our portfolio,” he said. In April 2017, Phoenix Mills and Canada Pension Plan Investment Board (CPPIB) announced that the latter will invest $250 million to own up to 49% in Island Star Mall Developers, a unit of the developer.
Island Star Mall Developers owns Phoenix MarketCity in Bengaluru, a mall with gross leasable area of 1 million sq. ft. Theinvestmentplatformwascreatedtorampupitsretailbusiness and expand to other cities. At present, PhoenixMillshasapresence in Mumbai, Pune, Bengaluru, Lucknow, Chennai and Bareilly.
Since the CPPIBtie-up, Island Star hasboughttwolandparcels each in Pune and Bengaluru.