Phoenix Mills (PML) and the Canada Pension Plan Investment Board (CPP Investments) have announced a new joint venture (JV) to develop an office-led mixed-use asset in Lower Parel, Mumbai.
The asset forms part of a larger mixed-use development at Phoenix Palladium, Mumbai. CPP Investments will commit to investing approximately Rs 13.5 billion (CAD 231 million) in tranches, for an ultimate equity stake of 49 percent in Plutocrat Commercial Real Estate Private (PCREPL), the entity that will own the asset.
With the funds invested by CPP Investments and PML, PCREPL will develop office space with a potential leasable area of approximately one million sq ft and flagship retail space with a potential leasable area of approximately 0.2 million sq ft.
The target completion date for the development is 2026. The office-led mixed-use asset will complement the existing retail development at Phoenix Palladium, Mumbai and The St Regis, Mumbai.
PML and CPP Investments’ first joint venture, Island Star Mall Developers (ISMDPL), was formed in 2017 to develop, own and operate retail-led, mixed-use developments across India.
Phoenix Marketcity in Whitefield Bengaluru served as the seed asset for the alliance. In addition to owning and operating Phoenix Marketcity, ISMDPL owns and is currently developing three retail-led, mixed-use developments at Wakad Pune, Hebbal Bengaluru and Indore.
In May 2021 a second joint venture between PML and CPP Investments was formed to develop a regional retail centre in Alipore, Kolkata.
Cumulatively, CPP Investments’ equity commitment in multiple JVs with PML now stands at approximately Rs 41 billion (CAD 709 million).