The Phoenix Mills to acquire 100% stake in Island Star Mall Developers from CPP Investments for ₹5,449 crore
This is a substantial transaction involving a significant financial outlay (₹5,449 crore) and the complete consolidation of a material subsidiary, which is expected to have a direct and positive impact on the company's financial performance and future growth trajectory.
The acquisition allows The Phoenix Mills to consolidate 100% ownership of a high-performing subsidiary, ISMDPL, which is projected to drive significant future EBITDA growth and strong cash flows. Management comments highlight strategic benefits and continued growth potential.
* The Phoenix Mills Limited (PML) announced on 24 July 2025 that its Board of Directors approved the acquisition of Canada Pension Plan Investment Board (CPP Investments)'s 49% shareholding in its material subsidiary, Island Star Mall Developers Private Limited (ISMDPL). * Post completion of the transaction, PML's ownership in ISMDPL will increase from 51% to 100%. * The aggregate consideration payable to CPP Investments is approximately ₹5,449 crore. * The payment will be made over 36 months in four tranches, with suitable adjustments. * The transaction will be implemented through a mix of buyback, capital reduction, and dividend payout by ISMDPL, and/or secondary purchase by PML or its affiliates. * The transaction is subject to approval from the Company’s shareholders and regulatory bodies, including CCI. * Mr. Atul Ruia, Chairman at The Phoenix Mills Limited, stated that this consolidation builds on their long-standing partnership with CPP Investments, aiming to create more vibrant mixed-use destinations. He also noted that other joint ventures with CPP Investments, such as Mindstone Mall Developers Private Limited and Plutocrat Commercial Real Estate Private Limited, will continue as planned. * Mr. Shishir Shrivastava, Managing Director at The Phoenix Mills Limited, highlighted that this transaction consolidates full ownership of a portfolio of high-quality, retail-led mixed-use assets. He mentioned that ISMDPL has 4.4 million sq. ft of operational retail space, delivering over ₹600 crore of EBITDA in FY25. The platform is projected to grow to over 5.2 million sq. ft of retail, around 4 million sq. ft of office space, and 2 to 3 hotels totalling approximately 1,000 keys. * The completed office portfolio of 2.2 million sq. ft is expected to start contributing from FY26, with upcoming phases (including Phase 2 retail and offices, and the Grand Hyatt hotel in Bengaluru) becoming operational between 2026 and 2027, driving sustained EBITDA growth and strong cash flows. * The transaction is expected to be earnings-accretive and capital-efficient from the first year, largely funded through internal accruals and incremental leverage at ISMDPL, preserving liquidity at the Group level.
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The Phoenix Mills Limited filed this with the NSE as a statutory disclosure, categorised under corporate actions. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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