Phoenix Mills intends to invest more than Rs 2,000 crore in the ongoing expansion of its portfolio across major cities in India in the fiscal year 2023-24, including Pune, Bengaluru, Kolkata, and Surat.
To support the construction of these projects in the previous fiscal year 2022-23, the retail-led mixed development company has already invested approximately Rs 1,400 crore.
This year, the company plans to open two new destination malls in Pune and Bengaluru, with a combined leasable area of 2.4 million sq ft. This expansion is expected to make Phoenix Mills the largest mall developer and operator in the country, with approximately 11 million sq ft of operational retail assets.
In addition to the current expansion plan, the company aims to expand its retail property portfolio in Navi Mumbai, Thane, Hyderabad, the National Capital Region, Chandigarh, and Jaipur. Locations such as Nagpur, Goa, and Vizag are also being evaluated for potential expansion.
Shishir Shrivastava, the Managing Director of The Phoenix Mills, stated:
"We are optimistic about 2023-24 as we prepare to launch two new malls in the next six months.
We anticipate sustained consumption growth in our existing malls, and we expect increased activity and consumption in Chennai, Pune, and Kurla due to expanded trading areas. Our latest malls in Indore and Ahmedabad have shown a significant upward trend."
The company plans to finance its ongoing expansion through internal accruals.
-Phoenix Mills achieved a 452% growth in consolidated net profit, reaching Rs 1,477 crore, driven by a 78% growth in income from operations, which amounted to Rs 2,638 crore. Retail consumption at its properties increased by 133% compared to pre-pandemic levels in 2019-20, reaching a record annual consumption of Rs 9,248 crore.
To date, the company has developed over 19 million sq ft across various asset classes, including retail, hospitality, commercial, and residential. It currently operates a retail portfolio of over 8 million sq ft, spread across 10 malls in 7 major cities in India.
Phoenix Mills is currently working on developing four new malls in key cities and expanding its existing retail assets, resulting in a net addition of approximately 5 million sq ft.
Furthermore, the company aims to enhance its retail destinations by incorporating Grade A office spaces. It currently operates office spaces with a gross leasable area of over 2 million sq ft, and it has an additional office portfolio under development, spanning over 5 million sq ft.
Picture credit: phoenixmills.com
