The country’s largest mall developer, Phoenix Mills has purchased an under construction mall in Indore’s MR 10 area for Rs 235 crore. The Phoenix Mall was purchased in an auction which was conducted by JM Financial Asset Reconstruction Company. The company offer local mall developer Pintu Chhabra.
From the sources said the lenders went for auctioning as the mall owners, the Kalani family, were not able to not pay their levy. 2.5 million square feet area for property development.
Atul Ruia, Joint managing director, Phoenix Mills, said that they were reviewing the possibility to bring the seized mall under the newly formed joint platform with Canadian investor CPPIB.
From sources, it is also in talks with US based real estate developer, JJ Gumberg, and the private equity firm Lapis Capitall to purchase North Country mall in Chandigarh. The mall is prized at around Rs 700 crore and the purchaser has to take over Rs 450 crore debt on it.
AtulRuia said, “We want to maintain our leadership in malls and buy brownfield assets and build new ones in metros and tier-II cities.”
Sources said that, Abu Dhabi sovereign fund Adia is the final part of talks with Lake Shore India Advisory and promoted by the retail property veteran Ashwin Puri. Others to give a handled account to the latter to invest in malls in top Indian cities. Lake Shore is an Investment manager.
However 5 malls closed last year and 10 others hcanged their usage to offices. These malls were operational in Delhi-NCR, Chennai, Mumbai and Pune.
The JLL expects that about 10 malls go to off business this year. Pankaj Renjhen, managing director retails services, JLL said that, it is not 1st time that malls were closed or converting into something others, but the quantum this time around was higher than all previous wihdrawals put together.