Canada Pension Plan Investment Board and mall developer The Phoenix Mills have entered into a pact to set up a strategic investment platform for retail real estate properties in India. This is CPPIB’s maiden retail real estate venture in India.
CPPIB will initially own 30% of the platform with an equity commitment of around Rs 724 crore. It plans to invest around Rs 1,600 crore through multiple tranches, to own up to a 49% stake in the platform.
Island Star Mall Developers, a Phoenix Mills’ subsidiary that owns Phoenix MarketCity Bangalore, will serve as the platform for this alliance. The proposed platform will develop, own and operate retail-led mixed-use developments across India.
Based on the committed investment value, pre-money enterprise value of Island Star Mall Developers is pegged at around Rs 2,200 for this investment.
Read more: The Economic Times
