Phoenix Mills Ltd (Phoenix) has acquired 60 per cent in Delhi-based Big Apple Real Estate Pvt Ltd (Big Apple), the owners of the United Malls brand.
The stake is being acquired through the swap of Phoenix stake in its Market City project in Agra to Big Apple and through an additional investment of Rs 80 crore.
“The stake is being acquired through the swap of Phoenix’s stake in its Agra project (Market City in Agra) into Big Apple and through an infusion of around Rs 80 crore as fresh capital,” the company said in a BSE announcement.
Expanding footprint
The investment and partnership with Big Apple is aligned to Phoenix’s plans to establish long-term relationships with leading pan-India and regional developers with the objective of achieving a formidable cross-country footprint as the leading retail led mixed format player over the next three years.
Phoenix’s board has approved the transaction and is subject to the necessary statutory, shareholder and regulatory approvals and due diligence.
Commenting on the development, Mahesh lyer, CFO of Phoenix Mills, said: “Uttar Pradesh has a huge potential, and given the operating dynamics in that State, we believe that a relationship with a forward thinking partner in Big Apple will help us realise our goals in the most effective manner. We expect the mall in Lucknow to open shortly, following which we expect to operationalise the Agra Market City a few months down the line.”
Retail malls
Big Apple has plans to build retail malls across north India, particularly in Uttar Pradesh, covering Lucknow, Agra, Bareilly and Varanasi amongst others. The funds infused by Phoenix are likely to be deployed across Big Apple’s projects in Meerut, building the second mall in Lucknow, and to move forward with the plans for Gorakhpur, Allahabad, Kanpur and Dehradun.
Big Apple has commenced construction of its Lucknow project and is in final stages of commencing construction of the Agra project. Funding for these projects has been secured by partnering with global as well as local private equity players including Kshitij Real Estate Fund, Yatra Capital and Edelweiss Real Estate Fund. While Bareilly and Varanasi projects are at an MoU stage the other ventures are under planning and land acquisition phase.
Big Apple’s Lucknow project aims to be the first of its kind in the State, offering a ‘one stop’ destination for shopping, entertainment and dining. It will comprise departmental / home stores, a multiplex, a food court, a family entertainment center, a luxury hotel, restaurants, a hypermarket, and small format retail stores. The project is being overseen by P.G. Patki & Associates, and is in an advanced stage of construction.
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