Phoenix buys mall in In­dore

HT Estates - - FRONT PAGE - Bidya Sa­pam bidya.s@htlive.com

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.

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