Public listed realty firm Phoenix Mills Ltd is buying out Everstone Capital’s real estate fund from its market city development project in Bangalore for Rs 68 crore ($12 million).

The firm is purchasing 7.73 per cent stake held by Horizon Realty Fund LLC and 18.27 per cent stake held by Horizon Ventures II, or around 26 per cent stake held by Horizon, for Rs 68 crore, thereby valuing the project at Rs 261 crore.

The project is housed under Island Star Mall Developers Private Limited and Phoenix Mills currently holds an effective stake of 42.05 per cent in the firm. Post the transaction Island Star will become a subsidiary of Phoenix Mills.

Island Star is developing a mixed-use project in Bangalore consisting of retail mall, hotel and residential developments spread across 1.89 million sq.ft. The retail mall has been operational since October 2011.

Horizon had invested in the project in April 2006.

Horizon Realty Fund LLC is a $350 million fund raised six years ago. It invests in retail-led real estate including integrated shopping, leisure and entertainment destinations focusing in the development of more than 15 million square feet in the major metros of Mumbai, Bangalore and Hyderabad.

(Edited by Prem Udayabhanu)

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