The Phoenix Mills Limited (PML) on Saturday announced the execution of a non‐binding term sheet to acquire balance 50 per cent equity stake in Classic Mall Development Company Limited (CMDCL) from Crest Ventures Ltd (CVL) and Escort Developers Private Ltd for Rs 918 crore.
In a regulatory filing, PML, said, on completion of the stake purchase, CMDCL will become its subsidiary.
The acquisition is expected to be completed by April 2022, it added.
“The consideration would be paid in cash (in one or more tranches)” PML said.
PML, a mixed‐use real estate developer, currently owns 50 per cent in CMDCL and the balance 50 per cent is owned by CVL (46.35 per cent) and Escorts Developers (3.65 per cent).Escorts Developers is a 100 per cent subsidiary of CVL.
CMDCL owns Phoenix Marketcity Chennai with chargeable area of approximately 1 million square feet in Velachery, a prime consumption hub in the city of Chennai.
According to PML, CMDCL had an annual turnover of ₹119.04 crore as on March 31, 2021, ₹243.76 crore as on March 31, 2020, and ₹243.89 crore as on March 31, 2019.