Mumbai-based developer The Phoenix Mills Ltd said on Monday it will buy back stakes in six hotel and retail properties from other shareholders.
It will buy back stakes in Gangetic Hotels Pvt. Ltd (39.13%), Pallazio Hotels & Leisure Ltd (14.4%), Vamona Developers Pvt. Ltd (8.4%), Offbeat Developers Pvt. Ltd (4.98%), Alliance Spaces Pvt. Ltd (16.8%) and Classic Mall Development Company Pvt. Ltd (5.8%).
“The proposed acquisitions by the company/its nominees will be effected on the terms and conditions mutually agreed with the shareholders/debenture holders and will be subject to fulfilment of certain precedent and other independent conditions,” it said in a stock-exchange filing.
The company didn’t specify who the selling shareholders were.
With this move, the company seems to be consolidating its assets in the run-up to a mega deal. As reported by VCCircle last year, the developer was in advanced stages of discussion to bring investors on board at the parent level or sell a stake across its rental properties.
The developer has 17.5 million sq ft of assets across residential, commercial, hospitality and retail segments. It has seven malls across six cities and five commercial centres. Its portfolio also includes five residential projects under development and two hotels which are being managed by global operators.
Known for its malls such as High Street Phoenix, The Palladium and Phoenix MarketCity (in four cities), the firm is looking to build more retail assets as it ramps up its portfolio.
On a recent analyst conference call, a company spokesperson said the company was looking at establishing its presence in new markets such as Kolkata, Kochi, Indore and Goa by acquiring land parcels to build malls or buying existing malls to expand its portfolio.
The Phoenix Mills, the fifth-largest listed developer by market value, saw its revenue rise 7.5% to Rs 1,778.5 crore and net profit more than double to Rs 81.5 crore for the year ended 31 March 2016.
In the first quarter of this financial year, it clocked net sales of Rs 442 crore, up from Rs 396 crore a year earlier. Net profit jumped 34% to Rs 47 crore.
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