Phoenix Mills, one of the leaders in the large retail-led mixed-use development segment, has acquired 60% stake in Big Apple Real Estate, the owners of the United Malls brand in Uttar Pradesh.
The stake is being acquired through the swap of Phoenix stake in its Market City project in Agra to Big Apple and through an additional infusion of Rs 80 crore as capital. In return, Phoenix has got 60% in Big Apple Real Estate.
Confirming the development, Phoenix Mills director Atul Ruia said, the acquisition is in line with their strategy to become the largest developer of mixed use retail-led centres in India. “Our equity partnership with Big Apple enable us to extend our presence across the nation and fortify our position as the leading retail centric mixed-use format player in the country,” Mr Ruia said.
Big Apple has plans to build retail malls across north India, particularly in UP, covering cities including Lucknow, Agra, Bareilly and Varanasi.
The fund infusion are likely to be deployed across Big Apple’s projects in Meerut, Lucknow, Gorakhpur, Allahabad, Kanpur and Dehradun.
Big Apple has commenced construction of its Lucknow project and is in the final stages of starting construction of the Agra project. Funding for these projects has been secured by partnering with global as well as Indian private equity firms like Kshitij Real Estate Fund, Yatar Capital, and Edelweiss Real Estate Fund. Market Cities are a retail-led mixed-use development. It is a concept of a ‘city within city’.
A typical Market City will have components like hypermarkets, home stores, 7-8 departmental stores, entertainment, hotels, mall, commercial space and service apartment. Market City projects are coming up as city-centric land parcels between 15 and 25 acres.
Source: Economic Times