Singapore's GIC, The Phoenix Mills to invest in retail-led mixed use projects

New Delhi: Wealth fund GIC, backed by Singapore government, and Mumbai-based The Phoenix Mills have set up a partnership to start an investment platform for real estate projects that will have a large retail development components to them. 

The platform will work towards development, owing and operating retail‐led, mixed‐use real estate projects in India. 

GIC will take a significant minority stake in a portfolio of real estate projects worth USD 733 million. These projects are located in the prime consumption centres of Mumbai and Pune, the companies said in a statement. 

The projects, including a 3.4 million square feet retail cum office project is presently under The Phoenix Mills ownership.   

“We are pleased to partner with PML in this joint venture to acquire a stake in these best‐in‐class retail assets in prime locations in India. With the management capabilities of a leading partner like PML, we believe that the joint venture will generate resilient long‐term returns,” said GIC Chief Investment Officer Lee Kok Sun.

The investment platform formed by the two entities will also explore value accretive acquisitions.

“We are pleased to expand our relationship with GIC, a marquee sovereign wealth fund revered globally. GIC is a like‐minded, long‐term partner who shares our vision for creating, owning and managing best‐in‐class retail and commercial assets. Their investment reaffirms the enormous growth opportunity for quality physical retail infrastructure in India and, in particular, PML’s ability to develop, operate and manage market leading mixed‐use assets,” said Atul Ruia, Chairman of Phoenix Mills.  

The proceeds of the platform will act as growth capital for The Phoenix Mills and its subsidiaries.