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The Phoenix Mills has acquired the Canada Pension Plan Investment Board's (CPP Investments) 49% stake in their joint venture, Island Star Mall Development (ISMDPL), for a total of INR 5,449.16 crore. This strategic move, which has been approved by the Competition Commission of India (CCI), gives Phoenix Mills full ownership and sole control of ISMDPL. The acquisition will be funded over three years and is intended to consolidate ownership of key retail assets, enhancing operational flexibility and positioning the company for long-term growth.
The Phoenix Mills, a leading retail mall developer, has acquired the 49% stake held by the Canada Pension Plan Investment Board (CPP Investments) in their joint venture, Island Star Mall Development (ISMDPL). The deal, which was approved by the Competition Commission of India (CCI) on August 19, 2025, is valued at INR 5,449.16 crore. This strategic acquisition gives Phoenix Mills full ownership of ISMDPL, which manages several premium retail and commercial assets, including Phoenix MarketCity in Bengaluru and Phoenix Citadel in Indore. Advertisement
The transaction is part of a growth strategy by Phoenix Mills to consolidate its ownership of high-performing assets with a long-term growth trajectory. The total consideration will be paid to CPP Investments in four tranches over a period of three years. A spokesperson for Phoenix Mills stated that the company will use a combination of methods, including buyback, capital reduction, dividend distribution by ISMDPL, and secondary purchases to complete the acquisition.
The acquisition is expected to provide Phoenix Mills with greater operational flexibility and the ability to upstream cash flows, which could create a potential for future platform monetization through real estate investment trusts (REITs) or other listings. This move by Phoenix Mills is a clear sign of its commitment to strengthening its position as a key player in India's retail and commercial real estate sector.
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