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Ongoing Capital Discussions
The developer, known for its extensive portfolio, is reportedly nearing a significant financial agreement to fund its upcoming Thane development. Phoenix Mills is in discussions with institutional investors, including the sovereign wealth fund GIC and the Canada Pension Plan Investment Board (CPP Investments). These entities are seen as preferred partners due to existing collaborations, though other potential backers are also being approached. The finalization of these talks is expected soon, according to sources familiar with the matter.
Project Scale and Strategic Vision
The Thane project is set to be a substantial undertaking, spanning approximately 3.3 million square feet. It is designed as a mixed-use development, integrating a retail mall with residential and other commercial components. This expansion aligns with Phoenix Mills' strategy to grow its retail footprint, which currently exceeds 11 million sq ft across eight cities, with nearly 7 million sq ft additional retail space under development. The company is also evaluating investor participation for its Chandigarh project once plans are finalized.
Investor Ties and Track Record
Phoenix Mills has a history of successful partnerships with GIC and CPP Investments. Last year, CPP Investments divested its 49% stake in the joint venture Island Star Mall Developers Pvt Ltd (ISMDPL) to Phoenix Mills for Rs 5,450 crore. ISMDPL focuses on developing retail-led mixed-use projects nationwide. Furthermore, Phoenix Mills and GIC formed a joint venture in 2021 to develop retail-led projects valued at Rs 5,362 crore. These established relationships underscore the trust and ongoing collaboration between the entities in India's real estate sector.