Mumbai-based real estate developer Phoenix Mills Ltd has raised $296 million (Rs 1,300 crore) from MPC Synergy, a German-Swiss private equity firm, for its various special purpose vehicles (SPV). MPC Synergy is a joint venture between Germany-based MPC Capital and Switzerland-based Synegy Asset, who have set up a $1 billion fund to invest in the Indian real estate market. The fund has picked up stake in ranging from 10% to 49% in 21 projects promoted by Phoenix Mills. Collins Stewart Inga were the advisors to Phoenix.
It has also acquired stake in two subsidiaries – Entertainment World Developers Pvt Ltd and Big Apple Real Estate. EWDPL, in which ICICI Venture also holds a stake, is a Tier II city centric retail mall, mixed use developer, engaged in the construction and operation of mixed-use retail centers and townships. Phoenix holds a 42% stake in EWDPL. While in Big Apple, in which Phoenix Mills has a 60% stake, are the owners of the United Malls brand in Uttar Pradesh. Phoenix Mills is also developing htoels in Mumbai and Chennai, which will be managed by Shangri-La. A significant part of the investment will also go to development of hotels.
Phoenix Mills has raised funding from private equity players quite a few times in last two years. In August last year,, Phoenix Mills raised nearly $325 million (Rs 1,300 crore), through qualified institutional placement of shares with global private equity majors such as Barclays Capital, Citigroup, HSBC Financial and DB Fund Mauritius, and a 24 per cent stake sale to real estate funds, Alpine Capital and Bluerich Fund. Befor that Yatra Capital had also invested in Phoenix Mills.
MPC Synergy had formed a joint venture with Anil Nanda’s real estate firm Akme Projects, which is developing seven projects at Ludhiana, Mohali, Greater Noida and two each in Bangalore and Gurgaon by 2012. It is also planning a foray in mutual fund business, for which it has earmarked around $200-300 million.