CCI Approves Phoenix Mills’ Full Acquisition of Island Star Mall Developers

The Phoenix Mills Limited, headquartered in Mumbai, is one of India’s leading developers and operators of large-scale retail-led mixed-use developments.

The Competition Commission of India (CCI) has granted approval for The Phoenix Mills Limited (PML) to acquire the remaining 49% stake in Island Star Mall Developers Private Limited (ISMDPL), thereby taking complete ownership and sole control of the company.

The transaction involves the Canada Pension Plan Investment Board (CPPIB), which held a 49% equity stake in ISMDPL, fully exiting its investment. Following this acquisition, Phoenix Mills will directly or through its affiliates become the 100% shareholder of ISMDPL.

About the Acquirer – Phoenix Mills Limited

The Phoenix Mills Limited, headquartered in Mumbai, is one of India’s leading developers and operators of large-scale retail-led mixed-use developments. Through its various subsidiaries, the company is engaged in:

• Development and operation of retail malls in major Indian cities.

• Commercial real estate projects, including office spaces and co-working hubs.

• Hospitality assets, including hotels and serviced residences.

• Food & beverage outlets and entertainment zones within its malls.

• Residential projects, including premium apartments and mixed-use townships.

Phoenix Mills is widely recognized for its flagship Phoenix Marketcity malls, which operate in metros such as Mumbai, Pune, Bengaluru, and Chennai, attracting millions of visitors annually.

About the Target – Island Star Mall Developers Pvt. Ltd.

Island Star Mall Developers Pvt. Ltd. (ISMDPL) is also engaged in the development, operation, and leasing of commercial and retail real estate. Through its subsidiaries, it manages projects in key urban centres, complementing Phoenix Mills’ broader retail and commercial real estate portfolio.

ISMDPL has been a joint venture between Phoenix Mills and CPPIB since 2017, with both parties holding stakes in the company. With this transaction, the JV structure will end, and Phoenix Mills will assume sole strategic and operational control.

Significance of the Acquisition

The full acquisition of ISMDPL is a strategic move for Phoenix Mills, strengthening its position as a dominant player in India’s retail real estate sector. Key implications include:

• Greater operational flexibility: With 100% control, Phoenix Mills will be able to make quicker and more aligned strategic decisions without JV-level approvals.

• Portfolio consolidation: The acquisition allows Phoenix Mills to fully integrate ISMDPL’s assets into its existing portfolio, improving efficiency and synergy.

• Expansion opportunities: As India’s retail sector continues to grow, driven by rising urbanisation and consumer spending, Phoenix Mills is well-positioned to expand in Tier-I and Tier-II cities.

Role of the Competition Commission of India

The CCI’s clearance confirms that the proposed transaction does not raise competition concerns in the Indian real estate market. Given the fragmented nature of retail and commercial real estate in India, the deal is expected to strengthen Phoenix Mills’ market position without harming competitive dynamics.

Broader Industry Context

India’s retail and commercial real estate market has been experiencing steady growth, driven by:

• The rise of organised retail formats and shopping destinations.

• Increasing demand for premium commercial office spaces.

• Growth in hospitality and entertainment segments integrated with retail complexes.

With CPPIB’s exit, Phoenix Mills’ consolidation move reflects broader trends of global investors partially exiting mature investments in India, while domestic developers take on greater ownership and operational control.

The approval by CCI marks an important milestone for Phoenix Mills as it transitions to full ownership of ISMDPL. The move is expected to bolster the company’s ability to deliver world-class retail, commercial, and mixed-use real estate projects, contributing to India’s growing urban infrastructure and consumer economy.