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The Phoenix Mills Ltd has announced it will acquire the remaining 49% stake in Island Star Mall Developers Pvt Ltd (ISMDPL) from the Canada Pension Plan Investment Board (CPP Investments) for INR 5,450 crore. With this deal, Phoenix Mills' stake in ISMDPL will increase from 51% to 100%, thereby giving it complete ownership of the JV. The transaction, approved by the company's board, aligns with its long-term strategy to consolidate high-performing assets and ensure sustained growth. The payment will be made in four tranches over a span of three years.
The Phoenix Mills Ltd has entered into a definitive arrangement to acquire the remaining 49% stake in its joint venture firm, Island Star Mall Developers Pvt Ltd (ISMDPL), from Canada Pension Plan Investment Board (CPP Investments) for a total consideration of INR 5,450 crore. With this acquisition, Phoenix Mills' ownership in ISMDPL will rise from 51% to a full 100%, granting the company complete control of the JV. Advertisement
As per the company's regulatory filing, Phoenix Mills, ISMDPL, and CPP Investments have jointly formalised the exit arrangement. The Phoenix Mills board has given its approval to this transaction, which is structured to disburse the payment to CPP Investments in four tranches over a period of three years. The exact cash consideration stands at INR 5,449.16 crore.
The transaction will be executed either through Phoenix Mills directly acquiring the 49% equity stake held by CPP Investments or through alternate routes such as dividend distribution, selective capital reduction, or share buybacks initiated by ISMDPL.
ISMDPL's current asset portfolio encompasses approximately 4.5 million sq ft. It owns the Phoenix MarketCity mall in Bengaluru and operates through three subsidiaries managing retail-led mixed-use developments in Pune, Indore, and Bengaluru. The JV firm reported a turnover of INR 919.73 crore in the most recent financial year.
Phoenix Mills stated that the move was consistent with its broader growth objectives to consolidate ownership in high-performing retail assets, which are expected to deliver long-term sustainable value. The company continues to expand its footprint across multiple real estate verticals, including retail, commercial offices, hospitality, and residential projects in key urban markets across India.
The transaction not only enhances the company's control over strategically significant assets but also reflects its commitment to driving long-term returns through operational autonomy and asset consolidation. Given ISMDPL's presence in key urban centres, full ownership is likely to offer operational flexibility and better alignment with Phoenix Mills' expansion blueprint.
Source - PTI
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