Malls to Metros: Phoenix Mills Expands Office Empire

Phoenix Mills, a prominent retail-led mixed-use asset developer and operator, is embarking on an ambitious expansion plan for its commercial offices portfolio over the next three years. The company intends to integrate assets spanning a total of 5.1 million sq. ft., strategically positioned in proximity to its existing retail malls across five key cities in India.

The expansion initiative includes a 1.2 million sq. ft. development in Pune, followed by a substantial 1.1-million sq. ft. project in Mumbai. Bengaluru is slated to witness a comprehensive development of 2.4 million sq. ft., distributed across two major assets of 1.2 million sq. ft. each. Additionally, Chennai is set to benefit from a new four-lakh sq. ft. office asset, contributing to an overall office assets expansion of 5.10 million sq. ft.

This strategic move aims to significantly elevate the company's operational office projects portfolio to seven million sq. ft. by the year 2027, marking a substantial increase from the current two million sq. ft. The financing for this expansion will be sourced through internal accruals.

In the company's existing commercial offices operational portfolio, the nine months ending December 2023 witnessed gross leasing exceeding 4.8 lakh sq. ft.

Notably, in 2022, Singapore’s sovereign wealth fund GIC demonstrated confidence in Phoenix Mills by investing Rs 400 crore for an additional stake in three subsidiaries, bringing its total investment to Rs 1,511 crore. This marked GIC’s second tranche of investment under its strategic partnership with Phoenix Mills, focused on establishing a joint venture for the development, ownership, and operation of mixed-use projects throughout India.

News by Rahul Yelligetti