Phoenix Mills and GIC to form investment platform for development of malls in India

Phoenix Mills (PML) and GIC, Singaporefs sovereign wealth fund, today announced the execution of definitive documents to form a strategic investment platform, to develop, own and operate retail]led, mixed]use developments in India. Earlier in December 2020, PML had announced signing of a non]binding term sheet with GIC for formation of this retail]led, mixed]use platform.

PML through its subsidiaries, Offbeat Developers (ODPL), Graceworks Realty & Leisure(GRLPL) and Vamona Developers (VDPL) and GIC will be parties to the transaction (hereinafter, ODPL, GRLPL and VDPL together referred to as gPML Subsidiariesh). PML will contribute the following retail and commercial assets to the platform.

 

Phoenix MarketCity, Kurla (Mumbai)
Phoenix MarketCity (Pune)
Art Guild House (Mumbai)
Paragon Plaza (Mumbai)
Paragon Plaza (Mumbai)

GIC will initially acquire an equity stake of ~26.4% in the PML Subsidiaries by investing an aggregate amount of approximately Rs. 1111 crore by way of a combination of primary infusion and secondary purchase of equity shares in the said PML Subsidiaries. The platform is valued at a pre]money enterprise value of Rs. 5500 crore. GICfs stake may further increase to ~33%]36% in the above]mentioned subsidiaries through an additional infusion of up to Rs. 400 crore within 12]month period from closing.

The primary proceeds from the transaction are intended to be utilized by the PML Subsidiaries as growth capital for further expansion and acquisition of greenfield, brownfield, operational and/or distressed mall opportunities. The secondary proceeds will bolster PMLfs safety net in the near term, fund various under]construction projects and act as war chest for further acquisitions in the medium term. GIC and PML may consider various options to monetize this platform, including by way of a REIT, over a three to five]year period from the closing of this transaction.

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