The Phoenix Mills Limited (PML), a real estate developer, announced the execution of non‐binding term sheet to acquire 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).
PML currently owns 50% in CMDCL and the balance 50% is owned by Crest Ventures (46.35%) and Escorts Developers (3.65%); completion of the stake purchase will make CMDCL a subsidiary of PML. PML will pay Rs. 9,180 mn to acquire the 50% stake held by Crest Ventures and Escorts Developers, the statement said.
The Company will fund the acquisition by way of internal accruals and cash on balance sheet and complete this transaction either on its own and/or through one of its affiliates. Subject to completion of due diligence, certain condition precedents and necessary approvals from the board, the transaction is expected to close by April 2022, it added.
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 in the city. The mall consists flagship stores of renowned brands, cafes and fine dining restaurants, food court with all major international and national brands, unmatched entertainment and leisure options with large well‐designed multiplex and Family Entertainment Center. Phoenix Marketcity Chennai generated an EBITDA of Rs 1,579 mn in FY20. For 9M FY22, it reported an EBITDA of Rs. 908 mn, the company mentioned.
