GIC Buys into Phoenix Mills Indian Retail Platform

Posted on 06/02/2021

Singapore’s GIC Private Limited and The Phoenix Mills Limited (PML) have entered into a strategic partnership to establish an investment platform for retail-led mixed-use assets in India. This platform will seek to develop, own, and operate retail-led, mixed-use developments in India. GIC will acquire a significant minority stake in a US$ 733 million portfolio of retail-led mixed-use developments, located in the prime consumption centres of Mumbai and Pune. These assets, totalling around 3.4 million sq ft of leasable retail and office space, are currently amongst PML’s most prime and well-performing operational assets.

Lee Kok Sun, Chief Investment Officer of Real Estate, GIC, said in a press release, “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.”

The transaction is subject to relevant regulatory approvals.

In December 2020, Phoenix Mills signed a term sheet to sell GIC a 26% stake in select assets in Pune and Mumbai for an enterprise value of Rs 5,600 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.

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