CPPIB, Phoenix Mills acquire Pune land parcel for Rs 161 crore
Canada Pension Plan Investment Board (CPPIB) and mall developer Phoenix Mills’ strategic investment platform Island Star Mall Developers (ISMDPL) has acquired a land parcel in Pune for Rs 161 crore.
The CPPIB and Phoenix Mills, in April, had created ISMDPL as an investment platform to develop, own and operate retail-led, mixed-use developments across India. This is the platform’s first acquisition since then.
Island Star Mall Developers is planning to develop a high-end retail property on the plot located in Wakad, Pune, near Hinjewadi Junction, off the Mumbai-Pune bypass. The said land parcel has a potential developable area of around 1.6 million sq ft, which will allow for a planned premium retail development of approximately 1 million sq ft, the company said in a release.
Atul Ruia, joint MD, The Phoenix Mills said, “The West of Pune is one of the fastest developing residential and commercial hubs in Pune and yet lacks large-scale retail, entertainment, and food and beverage options under one roof…(here) We will develop our second Phoenix MarketCity in the city. We look forward to working with CPPIB to acquire or develop additional high-quality retail assets across India’s top cities.”
The company already has an operational Phoenix MarketCity in East Pune and the new site is in west Pune. Pune is a key education and employment hub, and home to a number of large manufacturing and information technology companies. According to Phoenix, the company’s proposed new mall will be the largest retail destination in West Pune and will cater to the burgeoning middle-to-high income population spread across key residential and commercial areas.
“This acquisition helps deliver on our strategy of expanding our Indian retail portfolio with Phoenix Mills, an aligned, best-in-class partner. Pune’s attractive demographic and economic growth profile combined with an undersupplied retail market makes this an ideal location for a high-quality retail and entertainment destination and is well suited to CPPIB’s long-term investment horizon. We look forward to expanding our platform with Phoenix Mills across other cities,” said Andrea Orlandi, Managing Director, Head of Real Estate Investments – Europe, CPPIB.
ISMDPL holds Phoenix MarketCity Bengaluru, which was PML’s contribution to the platform and CPPIB agreed to invest up to approximately Rs 1,600 crore in multiple tranches, to own up to a 49% stake in the platform. Till date, CPPIB has invested Rs 720 crore in ISMDPL and owns 30% in the platform.