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Astrea Real Estate Developers, a subsidiary of The Phoenix Mills (PML), has acquired 9.03 acres of land in Coimbatore for INR 370.17 crore, marking PML's second retail project in Tamil Nadu. The acquisition involved purchasing equity in several entities and direct land purchases. PML holds a 67.1% stake in Astrea, with Reco Zinnia holding 32.9%. The project is part of PML's strategy to expand its retail portfolio in major Indian cities. The development is expected to enhance Coimbatore's retail landscape, following the success of Phoenix MarketCity and Palladium in Chennai.
Astrea Real Estate Developers (Astrea), a subsidiary of The Phoenix Mills (PML), has completed the acquisition of 9.03 acres of land in Coimbatore for INR 370.17 crore. This acquisition was achieved through a combination of share purchases and direct land acquisitions. PML holds a 67.1% equity stake in Astrea. Advertisement
The Managing Director of PML, Shishir Shrivastava, expressed satisfaction with the acquisition, stating, "The acquisition in Coimbatore marks our second retail development project in Tamil Nadu, following the success of our first project, Phoenix MarketCity and Palladium Chennai."
In its regulatory filing, the company disclosed that Astrea has fully acquired the equity share capital of several entities: Dhanalakshmi Engineering (DEPL), Pulankinar Investment and Finance (PIFPL), Coimbatore Sameera Investments (CSIPL), Shanthi Chandran Enterprises (SCEPL), Shanthi Chandran Investments Coimbatore (SCICPL), and Sheela Traders (STPL). These entities have now become wholly-owned subsidiaries of Astrea and step-down subsidiaries of PML as of August 07, 2024. These acquired entities collectively own 7.08 acres of land in Coimbatore. Additionally, Astrea directly acquired another 1.95 acres of land from individual owners, bringing the total land acquired to 9.03 acres.
In a separate regulatory filing, PML announced that it, along with Reco Zinnia (Reco) and Astrea, has entered into and executed a securities subscription agreement and a joint venture agreement. According to the terms of these definitive agreements, Reco invested INR 2.45 lakh in Astrea on August 07, 2024, by subscribing to 24,516 equity shares, each valued at INR 10. Following this investment, PML and Reco now hold 67.10% and 32.90% respectively in Astrea's paid-up equity share capital.
The acquisition is a significant step forward for PML in expanding its presence in Tamil Nadu's retail sector. By securing this land in Coimbatore, Astrea is set to develop a greenfield retail project expected to follow the success of the company's earlier developments in the region. The project aligns with PML's strategy of expanding its portfolio of high-quality retail assets across major cities in India.
The Coimbatore project is poised to contribute to the city's growing retail landscape, offering a modern shopping experience similar to what has been established in Chennai. The project is anticipated to cater to the increasing demand for retail spaces in Coimbatore, which is emerging as a key market in Tamil Nadu.
As PML continues to expand its footprint, the focus remains on developing strategic properties that enhance the company's portfolio and provide value to its stakeholders. The collaboration with Reco Zinnia also reflects a continued commitment to fostering strong partnerships that support the company's growth ambitions.
In summary, Astrea's land acquisition in Coimbatore marks a significant development for PML's expansion in Tamil Nadu. With strategic investments and partnerships, the company is well-positioned to deliver a successful retail project in the region, further solidifying its presence in the Indian real estate market.
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