The Phoenix Mills & GIC Form a Strategic Retail Led Mixed Use Platform in India

The Phoenix Mills Limited (PML) and GIC, Singapore's sovereign wealth fund, today announced the execution of definitive documents to form a strategic investment platform, to develop, own and operate retail-led, mixed-use developments in India. Earlier in December 2020, PML had announced signing of a non-binding term sheet with GIC for formation of this retail-led, mixed-use platform.

PML through its subsidiaries, Offbeat Developers Private Limited (ODPL), Graceworks Realty & Leisure Private Limited (GRLPL) and Vamona Developers Private Limited (VDPL) and GIC will be parties to the transaction (hereinafter, ODPL, GRLPL and VDPL together referred to as "PML Subsidiaries"). PML will contribute the following retail and commercial assets to the platform.

GIC will initially acquire an equity stake of ~26.4% in the PML Subsidiaries by investing an aggregate amount of approximately Rs. 11,110 million by way of a combination of primary infusion and secondary purchase of equity shares in the said PML Subsidiaries. The platform is valued at a pre-money enterprise value of Rs. 55,000 million. GIC's stake may further increase to ~33%-36% in the above-mentioned subsidiaries through an additional infusion of up to Rs. 4,000 million within 12-month period from closing.

The primary proceeds from the transaction are intended to be utilized by the PML Subsidiaries as growth capital for further expansion and acquisition of greenfield, brownfield, operational and/or distressed mall opportunities. The secondary proceeds will bolster PML's safety net in the near term, fund various under construction projects and act as war chest for further acquisitions in the medium term. GIC and PML 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 this transaction.

Shares of The Phoenix Mills Ltd was last trading in BSE at Rs.787.35 as compared to the previous close of Rs. 790.55. The total number of shares traded during the day was 2975 in over 419 trades.

The stock hit an intraday high of Rs. 814.85 and intraday low of 785.5. The net turnover during the day was Rs. 2353441.

Source : Equity Bulls

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