CPPIB and Phoenix Mills invest Rs 700 cr in Island Star Mall Developers
Real Estate

CPPIB and Phoenix Mills invest Rs 700 cr in Island Star Mall Developers

Global investment giant, the Canada Pension Plan Investment Board and retail mall developer The Phoenix Mills have pumped in Rs 700 crore as equity capital in Island Star Mall Developers, their joint subsidiary.

Both the organisations have infused the funds via a rights issue for deployment towards construction and development of the continuing projects of its subsidiaries at Hebbal in Bangalore, Wakad in Pune, and Madhya Pradesh’s Indore and other mutually agreed objectives. In April 2017, CPPIB and Phoenix had entered into definitive contracts to develop, own and operate retail-led mixed-use developments across India.

Under this deal, CPPIB had procured 49% holding in Island Star Mall Developers with 51% being owned by the Phoenix Mills.

The firm's retail mall Phoenix Marketcity in Whitefield locality of Bangalore operated as the seed asset for this partnership with CPPIB. The recent round is the second tranche of investments by both of them and there is no change in the shareholding of the firm following the recent round of funding, the firm told to media in a regulatory filing.

In June, Phoenix Mills and CPPIB had committed to invest Rs 800 crore worth of additional equity in their joint enterprise Island Star Mall Developers. Both the entities have now expanded their commitment by Rs 700 crore to Rs 1,500 crore. In June, CPPIB and Phoenix had invested Rs 400 crore in proportion to their shareholding and have now invested additional Rs 700 crore capital.

With this, they have achieved their aggregate equity commitment of Rs 1,100 crore out of the total offered Rs 1,500 crore. Last month, CPPIB and Phoenix Mills entered a new joint agreement to build a 1.2 million sq ft office led mixed use asset in Mumbai’s prime Lower Parel region. CPPIB will fund approximately Rs 1,350 crore in tranches for an ultimate equity stake of 49% in this joint enterprise. Before this, in May, CPPIB and the Phoenix Mills had agreed to extend their commitment to the existing partnership and to form a new joint venture to create a 1 million sq ft regional retail space in Kolkata’s Alipore locality.

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Also read: Godrej Properties partners with TDI group to develop housing project

Also read: Phoenix Mills, Singapore’s GIC form JV to invest in retail properties in India

Global investment giant, the Canada Pension Plan Investment Board and retail mall developer The Phoenix Mills have pumped in Rs 700 crore as equity capital in Island Star Mall Developers, their joint subsidiary. Both the organisations have infused the funds via a rights issue for deployment towards construction and development of the continuing projects of its subsidiaries at Hebbal in Bangalore, Wakad in Pune, and Madhya Pradesh’s Indore and other mutually agreed objectives. In April 2017, CPPIB and Phoenix had entered into definitive contracts to develop, own and operate retail-led mixed-use developments across India. Under this deal, CPPIB had procured 49% holding in Island Star Mall Developers with 51% being owned by the Phoenix Mills. The firm's retail mall Phoenix Marketcity in Whitefield locality of Bangalore operated as the seed asset for this partnership with CPPIB. The recent round is the second tranche of investments by both of them and there is no change in the shareholding of the firm following the recent round of funding, the firm told to media in a regulatory filing. In June, Phoenix Mills and CPPIB had committed to invest Rs 800 crore worth of additional equity in their joint enterprise Island Star Mall Developers. Both the entities have now expanded their commitment by Rs 700 crore to Rs 1,500 crore. In June, CPPIB and Phoenix had invested Rs 400 crore in proportion to their shareholding and have now invested additional Rs 700 crore capital. With this, they have achieved their aggregate equity commitment of Rs 1,100 crore out of the total offered Rs 1,500 crore. Last month, CPPIB and Phoenix Mills entered a new joint agreement to build a 1.2 million sq ft office led mixed use asset in Mumbai’s prime Lower Parel region. CPPIB will fund approximately Rs 1,350 crore in tranches for an ultimate equity stake of 49% in this joint enterprise. Before this, in May, CPPIB and the Phoenix Mills had agreed to extend their commitment to the existing partnership and to form a new joint venture to create a 1 million sq ft regional retail space in Kolkata’s Alipore locality. Image Source Also read: Godrej Properties partners with TDI group to develop housing project Also read: Phoenix Mills, Singapore’s GIC form JV to invest in retail properties in India

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