Phoenix Mills Completes First Tranche Payment of Rs 1,257 Crore Towards ISMDPL Full-Ownership Buyout
Acquisition of ISMDPL: Strategic Consolidation
During its Q4 FY26 earnings call on April 28, 2026, Phoenix Mills confirmed the first tranche payment of Rs 1,257 crore towards a full-ownership buyout of Island Star Mall Developers Private Limited (ISMDPL). The total acquisition value is Rs 5,449 crore, payable in four tranches over a 36-month period.
Upon completion, Phoenix Mills' stake in ISMDPL will rise from 51% to 100%, making it a wholly owned subsidiary. The move consolidates the company's control over a substantial portfolio of retail-led mixed-use assets across four metropolitan areas.
The ISMDPL Portfolio
ISMDPL was established in 2017 by CPP Investments and Phoenix Mills to develop retail-led mixed-use projects across India. The platform initially included Phoenix MarketCity Bangalore and later expanded to include three additional retail development assets.
ISMDPL currently operates 4.4 million square feet of retail space and generated operating profit exceeding Rs 617 crore in FY25, primarily from four operational malls. The platform also holds balance floor space index potential across its existing hubs in Bengaluru, Pune, and Indore, which can be developed in phases.
Funding and Structure
The acquisition structure includes a mix of buyback, capital reduction, dividend payout by ISMDPL, and secondary share purchase by Phoenix Mills or its affiliates. The transaction is expected to be earnings-accretive and capital-efficient from the first year, and is anticipated to be largely funded through internal accruals and incremental leverage at ISMDPL.
Regulatory Approvals and Market Context
The Competition Commission of India approved the acquisition on August 19, 2025. The deal reflects Phoenix Mills' strategy to strengthen ownership over high-performing retail assets as ISMDPL continues to operate and develop retail-led mixed-use properties anchored by Phoenix-branded malls in key urban centres.
Following this transaction, CPP Investments and Phoenix Mills continue joint ventures including a regional retail center in Kolkata and an office-led mixed-use asset in Mumbai, indicating sustained partnership beyond the ISMDPL consolidation.
Phoenix Mills' Retail-Led Strategy
Phoenix Mills Limited is India's leading retail mall developer and operator with approximately 6 million square feet of retail space spread across 8 malls in 6 gateway cities. The company has developed over 17.5 million square feet across retail, hospitality, commercial and residential asset classes.
In FY26, Phoenix Mills delivered consolidated revenue of Rs 4,423 crore (up 16% year-on-year) and EBITDA of Rs 2,637 crore (up 22% year-on-year), driven by strong retail, office, and hotel performance. During FY26, the company completed approximately 920 lease deals covering 3.2 million square feet and opened over 400 new stores across the portfolio.