The Phoenix Mills is planning to invest over Rs 2,000 crore to support the ongoing portfolio expansion across key cities in the country including Pune, Bengaluru, Kolkata, and Surat in the current financial year 2023-24.
The retail-led mixed development company has already invested around Rs 1,400 crore to fund the construction of these projects in 2022-23.
The company is likely to operationalise two new destination malls in Pune and Bengaluru with the combined size of 2.4 million sq ft leasable area this year. This expansion is expected to push the company up to the rank of the country’s largest mall developer and operator with nearly 11 million sq ft operational retail assets.
In addition to the current plan, the company is looking to target Navi Mumbai, Thane, Hyderabad, National Capital Region, Chandigarh, and Jaipur for the expansion of its retail properties’ portfolio. Locations including Nagpur, Goa, and Vizag are also under early evaluation for expansion.
“We are ready for 2023-24 with renewed optimism with the launch of two new malls within the next six months, a sustained consumption growth in existing malls, ramp up at existing malls in Chennai, Pune and Kurla on account of increase in trading area and consumption growth in our latest malls in Indore and Ahmedabad demonstrating a significant upward trend,” said Shishir Shrivastava, MD, The Phoenix Mills.
The company is planning to finance its investment for the ongoing expansion through its internal accruals.
The Phoenix Mills recorded 452% growth in consolidated net profit at Rs 1,477 crore on the back of 78% growth in income from operations at Rs 2,638 crore. Retail consumption at its properties rose 133% from pre-pandemic 2019-20 to Rs 9,248 crore, the highest-ever annual consumption.
It has so far developed over 19 million sq ft spread across retail, hospitality, commercial, and residential asset classes. The company has an operational retail portfolio of over 8 million sq ft spread across 10 operational malls in 7 gateway cities of India.
The company is currently in the process of developing four new malls in four key cities in the country and adding additional retail areas to operational assets, aggregating to a net addition of around 5 million sq ft.
The developer is further densifying its retail destinations with Grade A offices. It currently has an operational office portfolio with a gross leasable area of over 2 million sq ft and an under-development office portfolio of over 5 million sq ft.