Phoenix Mills venture to develop mall in Pune

MUMBAI: An investment platform owned by Canada Pension Plan Investment Board (CPPIB) and mall developer Phoenix Mills' has bought a land parcel in Pune for Rs 161 crore, marking the first such purchase by the vehicle created four months ago to run retail-led assets in India.
The Island Star Mall Developers (ISMDPL), a dedicated vehicle established in April 2017, seeks to develop, own and operate retailed, mixed-use developments. This acquisition would build a high-end retail property on the plot located in Wakad, Pune, near Hinjewadi Junction, off the Mumbai-Pune bypass.

The land parcel has a potential developable area of 1.6 million sq ft, which will allow for a planned premium retail development of approximately 1 million sq ft, the company said in a press statement.

“The west of Pune is one of the fastest developing residential and commercial hubs....We will develop our second Phoenix MarketCity in the city. We look forward to working with CPPIB to acquire or develop additional high-quality retail assets across India's top cities,“ said Atul Ruia, joint MD, The Phoenix Mills.

In east Pune, the company already has an operational Phoenix MarketCity. Pune is a key education and employment hub, and home to a number of large manufacturing and information technology companies.

To date, CPPIB has invested Rs 720 crore in ISMDPL and owns 30% of the special-purpose vehicle.