Phoenix Mills plans large expansion

Realty firm Phoenix Mills Ltd plans to buy underperforming malls and turn them around to attempt becoming the largest mall developer in India. “Acquisition is going to be a route for us. We are under-leveraged right now. We will look at under performing assets that are leaders in the market that they are in and buy them,” Phoenix Mills managing director Atul Ruia said.  Mr Ruia did not specify the size of acquisitions and source of funds.
Phoenix operates 1.5 million sq ft of retail space, which includes 0.8 million sq ft of the High Street Phoenix mall at Lower Parel in Mumbai and malls in smaller cities with other developers, such as Entertainment World Developers Ltd and Big Apple Real Estate. Phoenix plans to emerge as one of the largest mall developers in the next 12 months, Ruia added.
Recently, Phoenix Market City  opened in Pune with a total investment of Rs 700 crore spread over 30 lakh square feet area in Viman nagar. The company is expecting to generate a revenue of Rs 100 crore from the Pune-based mall.
The development also boasts of one of the biggest multiplexes in the city. At present, the mall has 55 stores that have already started operations, while 155 stores have been handed over for fit outs and it has a capacity of over 300 stores to accommodate. The mall comprises a large courtyard, hyper market area, departmental, bookstore; electronics and a toy store. It also has community spaces with water bodies, public plazas, hospitality, retail, F&B and entertainment.
Speaking on the development, Atul Ruia, managing director, Phoenix Mills Ltd, said, “Phoenix Market City, Pune is a significant step in building a blueprint for future Phoenix developments around the nation and allows us to leverage our expertise in real estate development. This lifestyle destination, a futuristic mixed-use led retail development format represents an important milestone in Phoenix Mill’s strategy to diversify in growing markets. This concept is driven by the growing observation that the Indian consumers today are looking for not only one-stop destination that offer high-end shopping, but also a place that offers a holistic lifestyle and leisure experience.”
Phoenix is also planning to develop two five star hotels within the market city. According to the sources, it has received proposals to develop facilities but it will take some time depending upon the kind of response it will get in the future. The brand list includes Zara, Blu O, Oviesse, Orama, Boggi, Diesel, Jack & Jones/Only, Reliance Trends, Parcos, FCUK, Lacoste, Aroma Thai, Fehrenheit, PVR among others.