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BENGALURU : Mall developer Phoenix Mills Ltd and Canada Pension Plan Investment Board (CPPIB) have entered into a new joint venture agreement to co-develop an office-led, mixed-use asset, which is part of Phoenix Palladium in Mumbai’s Lower Parel.

CPP Investments will invest 1,350 crore in tranches for a 49% stake in the joint venture, PCREPL, which will develop 1 million sq. ft of office space and retail space of 0.2 million sq. ft. The project is expected to be completed by 2026.

“I am delighted to further expand our existing relationship with CPP Investments, and together we will look to create an exemplary office-led development at Lower Parel. Our upcoming office spaces will be designed with the aim to cater to a global clientele. We are confident that Lower Parel will cement its pole position as the central business district of choice with the various infrastructure initiatives under way and we are confident of strong office demand in the coming years," said Atul Ruia, chairman, Phoenix Mills.

PML and CPP Investments’ first joint venture, Island Star Mall Developers Pvt. Ltd, was formed in 2017 to develop, own, and operate retail-led, mixed-use developments. Phoenix Marketcity in Whitefield, Bengaluru, was the seed asset for the alliance. In addition, the JV owns and is developing three retail-led, mixed-use projects at Wakad-Pune, Hebbal-Bengaluru and Indore. In May 2021, a second joint venture between PML and CPP Investments was formed to develop a shopping centre in Alipore, Kolkata.

“…As a longstanding investor in India, this investment cements our already strong and deep presence in the country’s fast-growing property sector, and will deliver steady, long-term returns for CPP contributors and beneficiaries," said Hari Krishna, managing director, real estate, India, CPP Investments.

Cumulatively, CPP Investments’ equity commitment in multiple joint ventures with PML now stands at about 4,100 crore.

In June, Phoenix Mills and Singapore’s sovereign wealth fund GIC Pte Ltd had said that they have jointly set up a $733 million investment platform for retail and office assets. GIC will have a significant minority stake in the projects comprising 3.4 million sq. ft of leasable area in Mumbai and Pune.

“In CPP Investments, we have a like-minded partner and together, we are excited to deliver on this new development," said Shishir Shrivastava, MD, PML.

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