GIC enters joint venture with India-based mall developer-operator

GIC has entered into a joint venture with Phoenix Mills, an India-based retail mall developer and operator, to establish an investment platform for retail-led mixed-use assets in India.

Under the agreement, Singapore's sovereign wealth fund will acquire a significant minority stake in Phoenix Mills' US$733 million portfolio of retail-led mixed-use developments, comprising about 3.4 million square feet of leasable retail and office space in the prime consumption centres of Mumbai and Pune.

Kishore Gotety, co-head of Asia (excluding China) real estate at GIC, said: "We recognise that the unprecedented global crisis is impacting consumer sentiment and that the necessary lockdown has made it challenging for all businesses, especially those in the retail sector.

"However, the long-term structural growth that the Indian retail industry continues to offer, due to favourable demographics, urbanisation, a growing middle class and increasing consumerism trends, will still benefit the joint venture."

Shishir Shrivastava, managing director of Phoenix Mills, said: "With multiple vaccines now feasible, we see a clear path towards turning the corner, past the second wave. As restrictions start relaxing, we are optimistic of a sharp rebound in consumption, as we experienced after the first wave."

The transaction is subject to relevant regulatory approvals, the sovereign wealth fund announced on Wednesday.