Foreign PEs go shopping at Phoenix
Leading private equity funds, along with a host of overseas real estate funds, have collectively acquired a 24% stake in Phoenix Mills for Rs 1,300 cr.
By Rajesh Unnikrishnan, TNN |
MUMBAI: Phoenix Mills, which pioneered the mill-to-mall revolution, is getting a foreign flavour. Rising real estate prices and the retail boom have transformed the prospects of the once-defunct mill, which runs High Street Phoenix in the Mumbai heartland.
| Currently, Phoenix Mills holds 75% stake in Atlas Hospitality while the remaining is with the promoters. |
Leading private equity funds like Barclays Capital, Citigroup, HSBC Financial and DB Fund Mauritius, along with a host of overseas real estate funds, Alpine Capital and Bluerich Fund, have collectively acquired a 24% stake in Atul Ruia-promoted Phoenix Mills for Rs 1,300 crore.
The funds have picked up equity through a mix of preferential allotment and qualified institutional placement (QIP). Six funds including Barclays Capital, Citigroup, HSBC Financial, DB Fund Mauritius, Rhodes Diversified, DWS Invest Bric Plus and Americorp Ventures acquired 7% stake in Phoenix Mills for Rs 330 crore through preferential allotment while the real estate funds and other private equity funds picked up 18% for Rs 980 crore.
Riding on the success of ‘High Street Phoenix’ in Mumbai, the company has floated a new retail model — Market Cities.
Market Cities are already present in Bangalore, Chennai, Pune and Mumbai while five more are coming up.
“A large part of the funds raised through the placement will be used to fund Market Cities, a new retail model, which we are currently developing. We will also invest another Rs 350 crore in Atlas Hospitality, our hospitality business subsidiary which holds the hotel business in the Market Cities across the country,” said Phoenix Mills’ director Atul Ruia.
Currently, Phoenix Mills holds 75% stake in Atlas Hospitality while the remaining is with the promoters. Market City is a city-centric concept developed by Phoenix. These are large-sized mixed format retail developments of approximately 2 million sq ft.
“Market Cities are a retail-led mixed use development. It is a concept of a ‘city within city’. A typical Market City will have components like hypermarkets, home stores, 7-8 departmental stores, entertainment, hotels, mall, commercial space and service apartment. Market City projects are coming up as city-centric land parcels between 15 and 25 acres,” Mr Ruia said.
Apart from five projects which are coming up, the company has also identified Kolkata, Thane, Nagpur, Hyderabad and Pune as the new ideal destinations for Market Cities. JM Financial, IL&FS Investsmart, Collins Stewart Inga and Edelweiss Capital advised Phoenix Mills on the private-equity deal. Post-acquisition, the promoters hold 62% stake in Phoenix Mills. Phoenix also merged its subsidiary, Ashok Ruia Enterprises, with itself.
Phoenix’s flagship High Street Phoenix is a huge shopping complex with several outlets such as Big Bazaar, Wills Lifestyle, Pantaloon and Home Store. The place is also known for its popular entertainment zones, bowling alleys, and restaurants.
The funds have picked up equity through a mix of preferential allotment and qualified institutional placement (QIP). Six funds including Barclays Capital, Citigroup, HSBC Financial, DB Fund Mauritius, Rhodes Diversified, DWS Invest Bric Plus and Americorp Ventures acquired 7% stake in Phoenix Mills for Rs 330 crore through preferential allotment while the real estate funds and other private equity funds picked up 18% for Rs 980 crore.
Riding on the success of ‘High Street Phoenix’ in Mumbai, the company has floated a new retail model — Market Cities.
Market Cities are already present in Bangalore, Chennai, Pune and Mumbai while five more are coming up.
“A large part of the funds raised through the placement will be used to fund Market Cities, a new retail model, which we are currently developing. We will also invest another Rs 350 crore in Atlas Hospitality, our hospitality business subsidiary which holds the hotel business in the Market Cities across the country,” said Phoenix Mills’ director Atul Ruia.
Currently, Phoenix Mills holds 75% stake in Atlas Hospitality while the remaining is with the promoters. Market City is a city-centric concept developed by Phoenix. These are large-sized mixed format retail developments of approximately 2 million sq ft.
ADVERTISEMENT
Phoenix intends to set up about 10 Market Cities across metros and relatively smaller retail format developments of about 1 million sq ft in tier II cities across India. “Market Cities are a retail-led mixed use development. It is a concept of a ‘city within city’. A typical Market City will have components like hypermarkets, home stores, 7-8 departmental stores, entertainment, hotels, mall, commercial space and service apartment. Market City projects are coming up as city-centric land parcels between 15 and 25 acres,” Mr Ruia said.
Apart from five projects which are coming up, the company has also identified Kolkata, Thane, Nagpur, Hyderabad and Pune as the new ideal destinations for Market Cities. JM Financial, IL&FS Investsmart, Collins Stewart Inga and Edelweiss Capital advised Phoenix Mills on the private-equity deal. Post-acquisition, the promoters hold 62% stake in Phoenix Mills. Phoenix also merged its subsidiary, Ashok Ruia Enterprises, with itself.
Phoenix’s flagship High Street Phoenix is a huge shopping complex with several outlets such as Big Bazaar, Wills Lifestyle, Pantaloon and Home Store. The place is also known for its popular entertainment zones, bowling alleys, and restaurants.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
