The Phoenix Mills (PML), India’s largest mall developer and Canada Pension Plan Investment Board (CPPIB) together formed strategic investment platform to develop, own and operate retail developments throughout the country.
The stock of The Phoenix Mills surged as much as 1% at Rs 414.7 on announcement.
CPPIB will launch its first ever real estate venture in India. This platform will be undertaken by PML’s subsidiary Island Star Mall Developers Pvt Ltd, which owns Phoenix MarketCity, Bengaluru. Company will concentrate on either development or acquisition of retail assets cross metros and teir-I cities in India.
Initially CPPIB will hold 30% stake costing Rs 724 crore in the platform which is expected to increase to 49% through investment of Rs 1600 crore. ISMDPL’s pre-money enterprise value is fixed at Rs 2200 crore.