Phoenix, GIC ink agreement to set up mall development unit

Mumbai: Phoenix Mills, whose properties helped transform Mumbai’s 19th century mill colonies into shopping districts rivalling Tokyo’s Ginza or London’s Oxford Street, has entered into an agreement with Singapore’s sovereign wealth fund GIC to set up a mall development platform in India.

Initially, the fund will pick up around 26% equity in certain retail and office assets portfolio owned by Phoenix Mills and some of its subsidiaries.

The platform will own and develop strategic retail-led mixed-use properties. Both entities may mutually agree to further increase GIC’s stake to up to 35% within a 12 month period from the closing of the proposed transaction.

“Given the standard due-diligence process and timelines, we hope the transaction would get concluded within the current financial year,” Shishir Shrivastava, MD, Phoenix Mills, told ET.

The company already has a separate alliance with the Canada Pension Plan Investment Board (CPPIB) under Island Star Mall Developers to develop, own and operate retail-led mixed-use developments across India.