Private Equity

Private Equity Fund Investments

Canada's CPPIB to invest Rs.1,350-Cr in Phoenix Mills' project in Mumbai's Lower Parel

BSE Release   Mint  

Mumbai-based, publicly-listed mall developer Phoenix Mills Ltd (PML) and Canada Pension Plan Investment Board (CPPIB) have entered into a new joint venture to develop an office-led, mixed-use asset in Mumbai's Lower Parel. CPPIB will invest INR 1,350 crore in tranches, via primary and secondary investments, for an equity stake of 49% in the entity, Plutocrat Commercial Real Estate Pvt Ltd (PCREPL), which will own the asset. Post the completion of the first tranche investment of INR 787 crore, PML and CPPIB shall hold 64.1% and 35.9% respectively, of the paid up equity share capital in PCREPL. Upon the completion of the investment, CPPIB's stake may rise to 49%. The property is part of a larger mixed-use development at the existing shopping mall Phoenix Palladium. The project is expected to be completed by 2026. With the freshly infused funds, PCREPL will develop office space with a leasable area of around 1 million sq ft and retail space with leasable area of 0.2 million sq ft.

From the Venture Intelligence PE-RE Deal database: Starting in 2017, CPPIB and Phoenix Mills have partnered for various projects including via a Joint Venture, Island Star Mall Developers Pvt. Ltd.