The board of Phoenix Mills had decided to invest in Big Apple Real Estate, the owners of the United Malls brand, with an intention to acquire a majority equity stake of over 60% in the said company.The stake is being acquired through the swap of Phoenix's stake in its Agra project (,market city in Agra) into Big Apple and through an infusion of around Rs 800 million as fresh capital.
This acquisition is in line with the Phoenix's strategy to become the largest developer of mixed-use retail led centers in India. Creating valuable partnerships with developers such as Big Apple enables Phoenix to further extend its presence across the nation and fortify its position as the leading retail centric mixed-use format player in the country.
Big Apple has commenced construction of its Lucknow project and is in final stages of commencing construction of the Agra project. Funding for these projects has been secured by partnering with global as well as Indian private equity players including Kshitij Real Estate Fund, Yatra Capital and Edelweiss Real Estate Fund. While Bareilly and Varanasi projects are at a MoU stage the other ventures are under planning and land acquisition phase.
This was decided at the board meeting held on 24 October 2007.
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