Private Equity

PE-RE Fund Investments

GIC to invest Rs.1,511-Cr in Phoenix Mills arms, new JV for retail-led mixed-use projects

BSE   Press Release  

Singapore's sovereign wealth fund GIC and Mumbai-based, publicly-listed The Phoenix Mills Ltd (PML) are to set up a joint venture that will develop, own and operate retail‐led, mixed‐use developments. GIC will acquire a significant minority stake in a USD 733 million portfolio of existing projects in Mumbai and Pune. Totalling about 3.4 million sq ft of leasable retail and office spaces, these are among PML's prime and well‐performing operational assets. PML's subsidiaries Offbeat Developers Pvt Ltd, Graceworks Realty & Leisure Pvt Ltd and Vamona Developers Pvt Ltd will also be parties to the transaction with GIC. The fund will initially acquire 26.4% stake in the PML subsidiaries by investing INR 1,111 crore by way of a combination of primary infusion and secondary purchase of equity shares at a pre‐money enterprise value of INR 5,500 crore. GIC's has the option to further increase its stake to 33-36% in the subsidiaries through an additional infusion of up to INR 400 crore within a year. The primary proceeds from the transaction will be used by the PML subsidiaries as growth capital for further expansion and acquisition of greenfield, brownfield, operational and distressed mall opportunities. The secondary proceeds will bolster PML's “safety net” in the near term, fund under‐construction projects and act as a war chest for further acquisitions in the medium term. GIC and PML may consider various options to monetize this platform, including by way of a REIT, over a three to five‐year period.