Phoenix Mills eyes Rs 100 cr annual revenue from Pune market city mall

MUMBAI: Phoenix Mills is eyeing annual revenue worth over 100 crores from its 3-million-sq ft market city complex that was opened in Pune earlier this week. Set up with an investment of Rs 700 crore, this is the first market city complex, including a mall and entertainment hub, launched by the company.

It is planning to launch three more such market city complexes in Bangalore, Kurla in Mumbai, and Chennai by March end.

The company expects revenue of around Rs 7 crores from leasing and around Rs 2 crores every month from non-leasing activities such as brand signage, event promotions, launches, and parking, said Tushar Mehta, Centre Director, Phoenix Market City (Pune).

Phoenix has already leased out 89% of its total 1.1 mln sq ft leasable space to several tenants including Zara, Blu O, Orama, Boggi, Diesel, Reliance Trends, FCUK, Lacoste, Fehrenheit, and PVR.

These agreements are for minimum guaranteed lease or revenue share whichever is higher, Mehta said.

"We started leasing around over 2 years ago at Rs 55-70 per sq ft a month, while today the rate has reached Rs 150-160 per sq ft a month. We are yet to lease out 120,000 sq ft space, and we hope to conclude deals for this also soon," he said.

The mall, once fully leased, is expected to see around 280-300 stores operational. At present, the mall has 55 stores that have already started operations, while 155 stores have been handed over for fit outs.

Phoenix Mills already operates High Street Phoenix at Lower Parel in Mumbai. It is planning to launch

On Friday, shares of Phoenix Mills closed at Rs 194.60 on the National Stock Exchange, up 2.4% from Thursday’s close.