Phoenix Mills increases its stake in Classic Mall Development Company to 100%; Stock slips 2.5%

6 May 2022 , 10:13 AM

The Phoenix Mills Limited (PML), India’s leading mixed-use real estate developer, has announced the completion of acquisition of balance 50% 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).

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

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

CMDCL owns Phoenix Marketcity Chennai with 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 flagship stores of renowned international & national brands, cafes and fine dining restaurants, food court, unmatched entertainment and leisure options with a large well-designed multiplex and Family Entertainment Centre. Phoenix Marketcity Chennai generated an EBITDA of Rs 1,579 mn in FY20. For 9M FY22, it reported an EBITDA of Rs. 908 mn.

At around 10:15 AM, Phoenix Mills was trading at Rs1,077.70 apiece down by Rs28.3 or 2.56% on the BSE.