The Phoenix Mills increases its stake in Classic Mall Development Company to 100%

India's leading mixed-use real estate developer, The Phoenix Mills Limited (PML) on Thursday announced the completion of the acquisition of the balance 50 per cent equity stake in Classic Mall Development Company Limited (CMDCL) from Crest Ventures Limited and Escort Developers Private Limited (a 100% subsidiary of Crest Ventures Limited).

Prior to this, PML owned 50 per cent in CMDCL and the balance 50 per cent was owned by Crest Ventures (46.35 per cent) and Escort Developers (3.65 per cent). CMDCL is now a wholly-owned subsidiary of PML effective today.

PML in the third week of February 2022 announced the execution of a non‐binding term sheet to acquire a balance 50 per cent equity stake in CMDCL from Crest Ventures and Escort Developers, a 100% subsidiary of Crest Ventures.

PML has paid Rs. 9,360 mn to acquire the 50 per cent stake held by Crest Ventures and Escort Developers. The Company has funded the acquisition by way of internal accruals and cash on the balance sheet.

CMDCL owns Phoenix Marketcity Chennai with a chargeable area of approx. 1 million sft in Velachery, a prime consumption hub in the city of Chennai. This development is one of the largest malls in the city and is revolutionising the retail & entertainment experience here. The mall consists of flagship stores of renowned international & national brands, cafes and fine dining restaurants, a food court, unmatched entertainment and leisure options with a large well-designed multiplex and Family Entertainment Centre.

Phoenix Market City Chennai generated an EBITDA of Rs 1,579 mn in FY20. For 9M FY22, it reported an EBITDA of Rs. 908 mn.