These assets, of around 3.4 million sq ft of leasable retail and office space, are currently among PML’s prime and well‐performing operational assets.
Lee Kok Sun, chief investment officer of real estate, GIC, said, “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. GIC has been investing in India for more than a decade and our long‐term confidence in the Indian real estate market remains strong.”
“We recognize that the unprecedented global crisis is impacting consumer sentiments and that the necessary lockdown has made it challenging for all businesses, especially those in the retail sector. However, the long‐term structural growth that the Indian retail industry continues to offer due to favourable demographics, urbanisation, growing middle class, and increasing consumerism trends will still benefit the joint venture…,” said Kishore Gotety,co‐head (Asia ex‐China) of real estate, GIC.
PML had signed a term sheet in December with GIC to sell 26% stake in select assets in Pune and Mumbai at an enterprise value of Rs5,600 crore.
Last week, PML and CPP Investments said they have signed definitive documents for a new joint venture to develop a shopping mall in Kolkata’s upscale Alipore area. Canada Pension Plan Investment Board (CPP Investments) has committed an investment of about ₹560 crore in Mindstone Mall Developers Pvt. Ltd in tranches, for an ultimate equity stake of 49%.
Atul Ruia, chairman, Phoenix Mills, said, “We are pleased to expand our relationship with GIC, a marquee sovereign wealth fund revered globally…Through this platform with GIC, we intend to jointly explore value‐accretive acquisition opportunities. Proceeds from the transaction received by PML will act as growth capital to both PML and its subsidiaries to explore and further enhance our portfolio of annuity income assets.”
Post the GIC and CPP deals, PML would have around Rs2,000 crore cash surplus in hand.
This article was first published on livemint.com.