Singapore’s sovereign wealth fund GIC has partnered with The Phoenix Mills (PML) to create a joint venture, which will focus on developing, owning, and operating retail-led, mixed-use developments in India.
GIC said it will acquire a significant minority stake in PML’s US$733 million portfolio of retail-led mixed-use developments located in the prime areas of Mumbai and Pune.
“With the management capabilities of a leading partner like PML, we believe that the joint venture will generate resilient long-term returns,” said Lee Kok Sun, chief investment officer of real estate at GIC.
“GIC has been investing in India for more than a decade and our long-term confidence in the Indian real estate market remains strong.”
PML is India’s largest retail-led mixed use developer. The company operates nine malls, such as Phoenix Palladium and Phoenix Marketcity, across six major cities in India.
“Through this platform with GIC, we intend to jointly explore value-accretive acquisition opportunities,” said Atul Ruia, chairman of PML. “Proceeds from the transaction received by PML will act as growth capital to both PML and its subsidiaries to explore and further enhance our portfolio of annuity income assets.”