Thursday, August 9, 2007

Foreign PEs picks 24% in Phoenix Mills

Leading private equity funds like Barclays Capital, Citigroup, HSBC Financial and DB Fund Mauritius, along with a host of overseas real estate funds, Alpine Capital and Bluerich Fund, have collectively acquired a 24% stake in Atul Ruia-promoted Phoenix Mills for Rs 1,300 crore.

The funds have picked up equity through a mix of preferential allotment and qualified institutional placement (QIP). Six funds including Barclays Capital, Citigroup, HSBC Financial, DB Fund Mauritius, Rhodes Diversified, DWS Invest Bric Plus and Americorp Ventures acquired 7% stake in Phoenix Mills for Rs 330 crore through preferential allotment while the real estate funds and other private equity funds picked up 18% for Rs 980 crore.

Riding on the success of ‘High Street Phoenix’ in Mumbai, the company has floated a new retail model — Market Cities.
Market Cities are already present in Bangalore, Chennai, Pune and Mumbai while five more are coming up.

Currently, Phoenix Mills holds 75% stake in Atlas Hospitality while the remaining is with the promoters. Market City is a city-centric concept developed by Phoenix. These are large-sized mixed format retail developments of approximately 2 million sq ft.

Phoenix intends to set up about 10 Market Cities across metros and relatively smaller retail format developments of about 1 million sq ft in tier II cities across India.

(Source: Economic Times )

No comments: