BENGALURU Mall developer Phoenix Mills Ltd and Canada Pension Plan Investment Board (CPPIB) have entered into a new joint venture agreement to jointly develop an office-run, mixed-use property that is part of Phoenix Palladium in Mumbai’s Lower Parel.
CPP Investments will invest ₹1,350 crore in tranches for a 49% stake in the PCREPL joint venture, which is worth EUR 1 million.
“I look forward to expanding our existing relationship with CPP Investments and together we will try to create an exemplary office-led development in Lower Parel. Our future offices are designed with the aim of serving a global clientele. We are confident that Lower Parel will consolidate its leadership position as the central business district of choice with the various infrastructure initiatives under way and we are confident that there will be strong office demand in the years to come, “said Atul Ruia, Chairman of Phoenix Mills.
The first joint venture between PML and CPP Investments, Island Star Mall Developers Pvt. Ltd, was founded in 2017 to develop, own and operate retail-owned, mixed-use developments. Phoenix Marketcity in Whitefield, Bengaluru, was the seed capital for the alliance. The JV also owns and develops three retail-run, mixed-use projects in Wakad-Pune, Hebbal-Bengaluru and Indore. In May 2021, a second joint venture between PML and CPP Investments was formed to develop a shopping mall in Alipore, Kolkata.
“… As a long-time investor in India, this investment solidifies our already strong and deep presence in the country’s rapidly growing real estate sector and will deliver stable, long-term returns for CPP donors and beneficiaries,” said Hari Krishna, Managing Director, Real Estate, India, CPP Investments.
The cumulative equity exposure of CPP Investments in several joint ventures with PML now amounts to approximately ₹4,100 million euros.
In June, Phoenix Mills and Singapore’s sovereign wealth fund GIC Pte Ltd announced that they had jointly set up a $ 733 million investment platform for retail and office real estate. GIC will have a significant minority stake in the 3.4 million square feet of lettable projects in Mumbai and Pune.
“With CPP Investments we have a like-minded partner and we look forward to implementing this new development together,” said Shishir Shrivastava, MD, PML.
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