Retail mall developer Phoenix Mills Ltd (PML) and Canada Pension Plan Investment Board have announced execution of definitive documents for a new joint venture to develop a regional retail centre at Alipore in Kolkata. CPP Investments will commit to invest Rs 560 crore in Mindstone Mall Developers Pvt Ltd in tranches for an ultimate equity stake of 49 per cent.
With the funds invested by CPP Investments and PML, Mindstone will develop a retail centre with a potential leasable area of 10 lakh sq ft. The target completion date is for the second half of 2024. PML Chairman Atul Ruia said the investment bears testament to long-term prospects of the company’s business model of creating destination consumption hubs in key cities of India.
“With this asset, we are well on track to more than double our operational retail portfolio by 2024. We remain focused on expanding our portfolio by investing in attractive markets and ensuring timely execution of the projects,” he said in a statement. Alipore is a premium neighbourhood and the site is strategically located, surrounded by a dense catchment of residential and office space.
Hari Krishna, Managing Director for CPP Investments’ real estate vertical in India, said with this investment, the company’s equity commitment to multiple ventures with PML amounts to over Rs 2,620 crore.
“India is one of the most important markets for us in Asia Pacific and a critical part of our long-term strategy. Working alongside reputed development partners like PML allows us to expand our portfolio and enhances our ability to deliver solid long-term risk adjusted returns to CPP contributors and beneficiaries.”PML and CPP Investments are also extending their commitments to their current joint venture — Island Star Mall Developers Pvt Ltd. Both have agreed to invest collectively up to Rs 800 crore in tranches in ratio of their respective shareholdings. The joint venture was formed in 2017 to develop, own and operate retail-led, mixed-use developments across India.