Phoenix Mills to gain full control of ISMDPL as CPP winds down joint platform after eight years
CPP Investments will divest its entire 49 percent stake in Island Star Mall Developers Private Limited (ISMDPL) for approximately $871m, according to a press release issued on July 25.
The buyer, The Phoenix Mills Limited (PML) and its affiliates, will assume full control of the platform originally created as a joint venture in 2017.
The sale will be executed through a structured transaction comprising a combination of buyback, capital reduction, dividend payout by ISMDPL, and/or secondary purchase by PML or its affiliates.
Payment will occur in four tranches over a 36-month period, with adjustments applied in the case of prepayment.
Bansi S Mehta Valuers LLP acted as the independent valuer and determined the fair value for the deal, while Morgan Stanley India Company Pvt Ltd advised PML and provided a fairness opinion.
ISMDPL was established to develop retail-led mixed-use projects in India and initially included Phoenix MarketCity Bangalore.
The platform later expanded to include three additional retail development assets.
Hari Krishna V, managing director and head of Real Estate India at CPP Investments, said the Indian retail sector has seen consistent growth, largely driven by favourable demographics and an expanding middle class.
“Through our longstanding partnership with Phoenix Mills, a seasoned retail-led mixed-use operator in India, we have been able to capture opportunities within this market,” he said.
He noted that the investment “generated strong returns for the CPP Fund.” With net assets totalling $30bn in India, he added that CPP Investments continues to explore opportunities across industries.
PML’s board has approved the proposed buyout, which remains subject to shareholder and regulatory clearances, including approval from the Competition Commission of India.
Upon completion, PML’s ownership in ISMDPL will increase from 51 percent to 100 percent.
Despite the exit, CPP Investments and PML continue to collaborate through other Indian ventures, including a regional retail centre in Kolkata and an office-led mixed-use asset in Mumbai.
As reported by CNBC TV18, Phoenix Mills posted a 12 percent year-over-year growth in retail consumption in Q1 FY26, reaching ₹3,588 crore ($568m)— a context that reflects continued momentum in the Indian retail market.
