MOSL: PHOENIX MILLS (Buy)-On-track execution-five new malls to drive rental growth
Phoenix Mills: On-track execution; five new malls to drive rental growth; Operational retail portfolio to double in four years
(PHNX IN, Mkt Cap USD1.3b, CMP INR590, TP INR708, 20% Upside, Buy)
- PHNX is well on track to achieve 11-12msf portfolio by FY23. Currently, the company has a retail portfolio of 5.9msf (operational) and 4.6msf (under construction), with plans to add another 1-2 new assets — taking the total portfolio to 11-12msf by FY23.
- The company is developing five new malls — three under the Canada Pension Plan Investment Board (CPPIB) platform (PMC Wakad, PMC Hebbal, and PMC Indore), Palladium Ahmedabad (a 50:50 alliance with BSafal group), and PMC Lucknow (100% self-owned).
- Construction at the five malls is well under way/likely to commence soon. For two malls, the company has acquired under construction retail development, with construction ongoing at a rapid pace; operations are expected to commence by 2HFY20 (PMC Lucknow) and FY21 (PMC Indore).
- Excavation at PMC Hebbal is expected to commence anytime during Feb’19, while for PMC Wakad, excavation began on 7 Feb’19. Construction at Palladium Ahmedabad — PHNX’s third Palladium mall after Mumbai and Chennai – commenced in Jan’19, and is expected to start operations in FY22.
- Total ongoing investment towards construction of malls and a new office asset (Fountainhead, Pune) is ~INR56.8b; of this, the company has already invested INR22.3b, the balance INR34.5b (INR20b under the CPPIB platform) will be invested over the next couple of years till FY23.
The Phoenix Mills Limited is an India-based company engaged in the construction of buildings carried out on own-account basis or on a fee or contract basis. The Company is engaged in the development and operation of malls and other real estate properties. It operates through twos segments: Property & Related Services, and Hospitality Services. It specializes in the ownership, management and development of retail-led mixed use properties that include shopping, entertainment, commercial, residential and hospitality assets, aggregating approximately 17.5 million square feet over 100 acres. Its core business includes Retail, Hospitality, Commercial and Residential. Under the Retail segment, it operates seven malls in six cities. Under Commercial and Hospitality segments, it operates five commercial centers in two cities and two completed hotel projects. The upscale mall houses various international brands, such as Gucci, Jimmy Choo, Bottega Veneta and Ermenegildo Zegna, among others.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.