The Phoenix Mills Limited ("PML or Company") and its subsidiaries, Offbeat Developers Private limited ('ODPL'), Graceworks Realty and Leisure Private limited ('GRLPL') and Vamona Developers Private limited ('VDPL') ('hereinafter ODPL, GRLPL and VDPL are together referred to as PML Subsidiaries'), have jointly signed a non-binding Term-sheet with an affiliate of GIC Private limited ('GIC'), for formation and development of a strategic retail-led mixed use platform ("Proposed Transaction"). The Proposed Transaction is subject to execution of definitive agreements by the parties and fulfilment of conditions as may be applicable from time to time.
PML will contribute the following retail assets : Phoenix Marketcity Mumbai and Phoenix Marketcity Pune and the following commercial assets: Art Guild House, Phoenix Paragon Plaza and Centrium, Mumbai as a part of the platform. Together these assets, which are held by the PML Subsidiaries, constitute a retail gross leasable area ('GLA') of approximately 2.33 million square feet ('msf') and office GLA of approximately 1.03 msf, aggregating to GLA of 3.36 msf with FY20 net operating income ('NOI') of approximately Rs. 3.70 bn.
PML's asset contributions are indicatively valued at an approximate enterprise value of Rs.56 bn - Rs.57 bn, subject to due diligence and adjustments, if any. GIC will invest in the PML Subsidiaries by way of a combination of primary infusion and secondary purchase of equity shares. Subject to mutually agreed terms and conditions between the parties, GIC will initially acquire an equity stake of 26%; the parties to the transaction may mutually agree for GIC to further increase its stake up to 35% within a 12 month period from the closing of the Proposed Transaction.
The proceeds from the proposed transaction are intended to be utilized as growth capital for further expansion and acquisition of greenfield, brownfield, operational and/or distressed mall opportunities. Parties may consider various options to monetize this platform, including by way of a REIT, over a three to five-year period from the closing of the Proposed Transaction.
Shares of The Phoenix Mills Ltd was last trading in BSE at Rs.689.5 as compared to the previous close of Rs. 682.55. The total number of shares traded during the day was 14607 in over 1545 trades.
The stock hit an intraday high of Rs. 703.05 and intraday low of 671.95. The net turnover during the day was Rs. 10109141.