CPP Investments will invest Rs 1,350 cr in tranches, acquire 49% stake in Lower Parel asset: Phoenix Mills

In an interview with CNBC-TV18, Shishir Shrivastava, Managing Director at Phoenix Mills, discussed the project.

“For this investment, CPPIB will acquire about 49 percent stake in that specific asset,” he said.

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There is going to be upstreaming of some capital, which will increase the liquidity at Phoenix Mills to the extent of about Rs 670 crore and the balance funds will be adequate to complete this project on an unlevered basis, he shared.

“So there is no further capital commitment by Phoenix Mills to complete this project. The funding provided by CPPIB is adequate. We have liquidity of about Rs 1,900 crore at Phoenix Mills. So at present, we are very liquid and poised for growth,” Shrivastava mentioned.

At present, GIC has acquired a partial stake in two assets. “They will, in all likelihood, move up to 35 percent in our mixed use development project in Mumbai at Kurla, and in the mall that we have at Viman Nagar in Pune. That has also created additional liquidity at Phoenix,” he explained.

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According to Shrivastava, consumption across the malls in the month of October and November has been spectacular. He remains confident about the performance of the retail mall business.

“In October, we saw consumption of about Rs 660 crore across the malls, which is about 90 percent of where we were pre-pandemic. In the month of November so far, we have seen consumption in excess of Rs 450 crore, which is about 15 percent higher than the same period in November 2019, which again is pre-pandemic. We continue to remain confident about the performance of our retail mall business,” he stated.