Phoenix Mills to Invest 2000 Cr

Phoenix Mills to Invest 2000 Cr to Expand its Real Estate Portfolio

In the current fiscal year 2023-24, The Phoenix Mills plans to invest over Rs 2,000 crore to support the ongoing portfolio expansion in key locations such as Pune, Bengaluru, Kolkata, and Surat.

In order to finance the construction of these projects in 2022-23, the retail-driven mixed development company has already invested approximately Rs 1,400 crores.

This year, the company is likely to open two new destination centres in Pune and Bengaluru totaling 2.4 million square feet of rentable space.

With nearly 11 million sq ft of operational retail assets, this expansion is anticipated to propel the company to the position of the nation's largest mall developer and operator.

After investing 1400 cr in projects in key cities in the previous fiscal year, the FY23 TARGET Company will invest additional funds in projects in these cities.

In addition to the present plan, the company intends to expand its retail property portfolio in Navi Mumbai, Thane, Hyderabad, the National Capital Region, Chandigarh, and Jaipur. Additionally, locations including Nagpur, Goa, and Vizag are being evaluated for expansion.

The company intends to fund its investment in its continuous expansion with internal accruals.

The Phoenix Mills' consolidated net profit increased by 452% to Rs 1,477 crore on the heels of a 78% increase in revenue from operations to Rs 2,577 crore. The retail consumption of its properties increased by 133% from pre-pandemic 2019-20 to Rs 9,248 crore, the highest annual consumption ever recorded.

It has developed over 19 million square feet of retail, hospitality, commercial, and residential property. The company has a retail portfolio of over 8 million square feet distributed across 10 operational complexes in seven of India's gateway cities.

The company is in the process of developing four new malls in four major cities and adding additional retail space to operational assets, totaling a net addition of approximately 5 million square feet.

The developer is adding Grade A offices to its retail destinations to increase their density. It has an operational office portfolio with a gross leasable area of more than 2 million square feet and an under-development office portfolio with a gross leasable area of more than 5 million square feet.