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Cpp Investments will invest 1,350 Cr Rs in tranches and acquire a 49% stake in the assets of Lower Parel: Phoenix Mills

Phoenix Mills and the Canada Pension Plan Investment Board (CPPIB) have entered into a new joint venture for a mixed-use development project led from offices at Lower Parel in Mumbai.

The development size of the project is approximately 1.2 million square feet – it includes approximately one million square feet of office space and approximately 200,000 square feet of retail space.

The CPPIB will invest around Rs 1,350 crore in installments and the project is expected to be completed by 2026.

In an interview with CNBC-TV18, Shishir Shrivastava, general manager of Phoenix Mills, discussed the project.

“For this investment, the CPPIB will acquire approximately 49% of the capital of this specific asset,” he said.

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There will be a capital injection upstream, which will increase the liquidity of Phoenix Mills to around Rs 670 crore and the balance of funds will be sufficient to carry out this project without financial leverage, he shared.

“So there is no further capital commitment from Phoenix Mills to complete this project. Funding provided by CPPIB is adequate. We have approximately Rs 1,900 crore cash at Phoenix Mills. So right now we are very liquid and ready for growth, ”said Shrivastava.

Currently, GIC has acquired a partial interest in two assets. “They will, in all likelihood, increase to 35% in our mixed-use development project in Mumbai in Kurla, and in the shopping center that we have in Viman Nagar in Pune. It also created additional liquidity in Phoenix, ”he explained.

According to Shrivastava, consumption in shopping malls in October and November was spectacular. He remains confident about the performance of the shopping center activity.

“In October, we saw consumption of around Rs 660 crore in shopping malls, which is around 90% of what we were before the pandemic. So far in the month of November we have seen consumption above Rs 450 crore, which is about 15% more than the same period in November 2019, which is again pre-pandemic. We remain confident in the performance of our commercial activities in shopping centers, ”he said.

For the full interview, watch the accompanying video.

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(Edited by : Dipikka Ghosh)


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