Phoenix Mills Enters Into JV For Premium Retail Development In Gujarat
The Phoenix Mills Limited (PML) announced that it has formed a 50:50 joint venture with an Ahmedabad-based BSafal group to acquire a 5.16-acre land located on Sarkhej - Gandhinagar (SG) Highway in Thaltej, Ahmedabad. PML will invest approximately Rs. 2.30 bn for its 50% stake in the JV. The JV will develop a premium retail destination spread over approximately 0.6 million square feet. This retail development will be operated and managed by PML.
Ahmedabad is the largest city in Gujarat and fifth most populous city in India. The city is the financial capital of the state and has presence of some of India's largest corporates and IT-ITES companies. Thaltej, where the land parcel is located, is the fastest growing prime residential area in Ahmedabad and is at a distance of about 4 kms from Western Ahmedabad's other prime residential areas such as Satellite, Bodakdev and Vastrapur which have one of the highest capital values amongst residential areas in the city.
"This investment is in line with PML's plan to establish presence in emerging tier-1 cities. Ahmedabad has been on our radar for some time as the city has one of the most discerning customers in the country who are young, aspirational, well-travelled and have high propensity to spend. Our proposed premium retail development will cater to upmarket residential areas of Western Ahmedabad as well as the catchment areas of CG Road, Ashram Road and Navrangpura which are all within 20-22 minutes driving distance. With our foray in Ahmedabad, our retail portfolio under development stands at approx. 4.6 million square feet in addition to our existing operational portfolio of about 6 million square feet. This brings us very close to our stated plan of adding 5-6 million sq. ft by FY23" commented Mr. Shishir Shrivastava, Joint Managing Director, The Phoenix Mills Limited.