Phoenix Mills announced that the company will be entering into a strategic alliance with Entertainment World Developers (EWDPL) by acquiring over 42% stake in the company. Phoenix is currently building retail led mixed use development centers in Tier I cities under the brand name of `Phoenix Market City` and through partnerships with regional players in the Tier II cities.
Phoenix will acquire the 42% stake through a combination of fresh cash infusion to acquire equity in EWDPL, and through the merger of certain entities that currently own equity in EWDPL. As a result of the transaction, EWDPL`s post money equity is being valued at Rs 12,500 million.
EWDPL is a Tier II city centric retail mall, mixed use developer, currently engaged in the construction and operation of mixed-use retail centers and townships. The investment and partnership with EWDPL is aligned to Phoenix`s plans of establishing long-term relationship with leading pan-India and regional developers with the objective of achieving a formidable cross-country footprint as the leading retail led mixed format player over the next three years.
Phoenix and EWDPL are also in the process of creating a mall operations and marketing company under Phoenix for all projects. The company plans to establish long term relationships with leading national and regional developers across India with the objective of achieving, a pan India footprint within 3 years. This acquisition will take Phoenix one step closer to being the single largest developer of retail malls in India.
Phoenix intends to emerge as a powerhouse in the retail mall business across India. It will continue to focus on building large format retail centers, which it terms as `Market Cities` in Tier I cities, it will also spread its presence across the nation through its regional partnerships and development initiatives. The company has an objective of having retail malls in every city in India over the next few years, initially focusing on the top 100 cities.
Source: My Iris