Mumbai-based realtor The Phoenix Mills Ltd has bought out IL&FS’ stake in one of its associate company. The firm has hiked its holding in Offbeat Developers Pvt Ltd (ODPL), which has developed an operates a mixed use development project in Mumbai, for an undisclosed amount, making it a subsidiary, as per a stock market disclosure.
The company said that it owned 23.94 per cent stake in ODPL and has now acquired 29.29 per cent stake owned by IL&FS Financial Services, thereby raising its holding to 53.23 per cent.
ODPL houses the Phoenix Market City located at Kurla, an integrated mixed use development, comprising of retail and commercial component.
In January this year, rating agency CARE said in a note that ODPL promoted by Phoenix Mills along with another Mumbai-based developer HBS Realtors Private Limited (HRPL) was incorporated in February 2000. In 2006, ODPL acquired land admeasuring 16.92 acres in Kurla, Mumbai, from Mukund Iron & Steel for a total consideration of Rs 240 crore and sold a portion of the said land parcel admeasuring 3.5 acres to another group company of Phoenix for a consideration of Rs 35 crore.
ODPL undertook construction on the remaining land parcel in two phases. In phase I it built the retail mall and its phase II consists of development of the commercial property and the development will be spread over a period of eight years ending FY16.
At the end of the last quarter, analysts had indicated that the Phoenix Mills has a cash requirement of Rs 1,600 crore in FY14-FY15 for stake buyouts which will limit its cash flows.
