Phoenix Mills plans on investing more than Rs 2,000 crore to continue their ongoing portfolio expansion plans across major cities like Kolkata, Bengaluru, Surat and Pune in the ongoing financial year 2023-24.
The company has already invested approximately Rs. 1,400 crore into these construction projects in 2022-23.
The company is expected to commence operations in two of the new destination malls in Pune and Bengaluru by this year, with an overall leasable area of 2.4 million sq ft. This development is likely to put Phoenix Mills in the first rank of the list of largest mall developers and operators in the country, with nearly 11 million sq ft of operational commercial assets.
Apart from the current strategy, the company intends to focus on expanding its retail properties’ portfolio in many more regions. These regions include Navi Mumbai, Thane, Hyderabad, the National Capital Region, Chandigarh, and Jaipur. Additionally, the company is considering potential expansion in Nagpur, Goa, and Vizag, although these locations are still in the early evaluation stage.
Shishir Shrivastava, the Managing Director of The Phoenix Mills, expressed optimism for the upcoming year, stating that they are well-prepared for 2023-24. He mentioned the launch of two new malls within the next six months and the sustained growth in consumption at existing malls. Furthermore, Shrivastava highlighted the increasing trading area and consumption growth at malls in Chennai, Pune, and Kurla, as well as the positive trend observed at the latest malls in Indore and Ahmedabad.
To finance their ongoing expansion, the company plans to utilise its internal accruals.
The Phoenix Mills achieved remarkable financial results, with a 452 per cent growth in consolidated net profit, amounting to Rs 1,477 crore, and a 78 per cent growth in income from operations, reaching Rs 2,638 crore. The retail consumption at their properties also witnessed a significant increase of 133 per cent compared to the pre-pandemic period in 2019-20, reaching a record-high annual consumption of Rs 9,248 crore.
With over 19 million sq ft of development across retail, hospitality, commercial, and residential assets, The Phoenix Mills boasts an operational retail portfolio of more than eight million sq ft, spread across 10 malls in seven major cities in India. Currently, the company is actively developing four new malls in key cities and expanding the retail areas of existing assets, resulting in a net addition of approximately five million sq ft.
The company is also focusing on incorporating Grade A offices into their retail destinations. They presently have an operational office portfolio covering over 2 million sq ft of gross leasable area, and an additional office portfolio of over five million sq ft under development, as they strive to enhance their retail offerings.