Phoenix Mills and CPP Investments collaborate to develop a project in Mumbai
The office-led mixed-use asset will complement the prevailing retail development at Phoenix Palladium and therefore The St. Regis Mumbai hotel.
The Phoenix Mills Limited (PML) and Canada Pension Plan Investment Board (CPP Investments) today announced a new joint venture to develop an office-led mixed-use asset in Lower Parel, Mumbai. The asset forms bigger mixed-use development at Phoenix Palladium, Mumbai.
CPP Investments will commit to investing approximately Rs 1350 crore (C$ 231 million ) in tranches, for an ultimate equity stake of 49 per cent in Plutocrat Commercial Real Estate Private Limited (PCREPL), the entity which will own the asset. With the funds invested by CPP Investments and PML, PCREPL will develop office space with a potential leasable area of roughly 1,000,000 sq ft and flagship retail space with a possible leasable area of approximately 0.2 million sq ft. The target completion date for the development is 2026.
The office-led mixed-use asset will complement the prevailing retail development at Phoenix Palladium, Mumbai and therefore The St. Regis Mumbai hotel.
Commenting on the deal, Atul Ruia, Chairman at The Phoenix Mills Limited, said, "I am delighted to further expand our existing relationship with CPP Investments and together we will look to create an exemplary office-led development at Lower Parel. Phoenix Palladium is already India’s most iconic retail-led destination, housing over 250+ luxury and flagship stores, and witnesses great synergies with one of India’s marquee luxury hotels, The St. Regis Mumbai. The new proposed office development will further complement and enhance the attractiveness of this destination. We are confident that Lower Parel will cement its pole position as the central business district of choice with the various infrastructure initiatives underway and we are confident of strong office demand in the coming years.”
At the closing bell on Tuesday, shares of Phoenix Mills closed at Rs 1,067, down by 4.83 per cent.