Phoenix Mills, Canada Pension Plan Investment Board to form JV for a mall in Kolkata

New Delhi: Mumbai-based The Phoenix Mills and Canada Pension Plan Investment Board (CPP Investments) will ink a joint venture (JV) to come up with a regional retail centre in Kolkata. CPP Investments will invest Rs 560 crore in the JV company ‘Mindstone Mall Developers Pvt Ltd’ in various installments and will take up its equity in the JV Company to 49 percent finally.

The Indian real estate company and CPP Investments also plan to invest collectively up to Rs 800 crore in another JV company ‘Island Star Mall Developers Pvt Ltd’. The investment of Rs 800 crore will be made in tranches. 

"With the funds invested by CPP Investments and PML, Mindstone will develop a retail centre with a potential leasable area of approximately 1 million sq ft," the companies said in a joint press statement. 

"This investment bears testament to the attractive long-term prospects of our robust business model of creating destination consumption hubs in key cities of India. With this asset, we are well on track to more than double our operational retail portfolio by 2024," said Phoenix Mills Ltd (PML) Chairman Atul Ruia. 

"With this investment, CPP Investments' equity commitment to multiple ventures with The Phoenix Mills amounts to over Rs 26.2 billion. India is one of the most important markets for us in the Asia Pacific and a critical part of our long-term strategy,” said CPP Investments MD, Real Estate India, Hari Krishna.