CPPIB to Invest Rs 1350 crore to jointly develop 1 million sq ft offices, 2 lakh sq ft retail assets in Mumbai’s lower Parel
Global Investment major the Canada pension plan Investment Board and retial mall developer The Phoenix mills have entered into a new joint venture to develop an office-led
Mixed-use asset in Mumbai’s prime Lower Parel area.
CPP Investment will commit to investing around Rs 1350 crore in tranches, for an ultimate commercial Real Estate Pvt. Ltd (PCREPL), the entity that will own the asset. The asset forms part of a larger mixed use development at phoenix palladium, Mumbai.
With the funds invested by CPP investments and Phoenix Mills, PCREPL will develop office space with a potential sealable area of around 1 million sq ft and flagship retail space with a potential sealable area of around 2 Lakh sq ft. The target completion date for the development is 2026.
“We are confident that Lower Parel will cement its pole position as the central business district of choice with the various infrastructure initiatives underway and we are confident of strong office demand in coming years,” said Atul Ruia, Chairman, the Phoenix Mills.
According to him, the proposed office development will complement the attractiveness of Phoenix Palladium that already houses over 250 luxury stores and whiteness synergies with luxury hotel, The St. Regis, Mumbai.
Cumulatively, CPP Investments’ equity commitment in multiple joint ventures with phoenix Mills now stands at around Rs, 4100 crore.
“As a longstanding investor in India, this investment cements our already strong and a deep presence in the country’s fast growing property sector, and will deliver steady, long-term returns for CPP contributors and beneficiaries, “ said hari Krishna managing Director, Real Estate—india, CPP Investments.
Phoenix Mills has an optional retail portfolio of 7 million sq ft spread over across 9 operational malls in 6 key cities of India. The company is further developing 5 malls with over 6 million sq ft retail space in five cities of the country.
Besides retail, Phoenix Mills an operating commercial office portfolio with gross leasable area of 1.5 million sq ft and plans to add around 5 million sq ft of commercial offices across existing retail properties. It also owns 2 hotels aggregating to 588 keys and 1 ongoing residential project in Bengaluru.