Phoenix Mills Ltd (PML), a retail mall developer and Canada Pension Plan Investment Board will form 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.
Commenting on the development, Mr. Shishir Shrivastava, Managing Director at The Phoenix Mills Limited, said, “Alipore, Kolkata is a premium neighbourhood and the site is strategically located, surrounded by a dense catchment of residential and office space. We believe that the site’s proximity to established and developing micro-markets, through extensive and well-developed civic infrastructure, provides us with ample opportunity to cater to the region’s significant untapped consumption potential. We see this will be a mall for the city of Kolkata and a dominant consumption hub for the state of West Bengal. Our mall will be designed by international architects with large and modern open public spaces that will be integral to the customer experience in Kolkata’s largest retail centre. We intend to host the best of domestic and international brands, representing all categories of consumer wallet spend.”
“We are pleased to further expand our relationship with The Phoenix Mills, a pioneer in India’s retail property sector, to develop and own a premium retail centre in an underserved market. With this investment, CPP Investments’ equity commitment to multiple ventures with The Phoenix Mills amounts to over INR 26.2 billion. 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 such as
The Phoenix Mills allows us to expand our portfolio and enhances our ability to deliver solid long term risk adjusted returns to CPP contributors and beneficiaries,” Hari Krishna, Managing Director, Real Estate – India, CPP Investments, said in a statement.
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.