The Phoenix Mills Ltd (PML) has significantly expanded its footprint in Tamil Nadu through its subsidiary, Astrea Real Estate Developers (Astrea). The company has acquired a substantial 9.03 acres of land in Coimbatore for Rs370.17 crore. This acquisition, which combines share purchases with direct land acquisitions, underscores PML’s commitment to enhancing its retail development portfolio in India.
Astrea, which is 67.1% owned by PML, has now finalised the purchase of several landholding entities, including Dhanalakshmi Engineering (DEPL), Pulankinar Investment and Finance (PIFPL), Coimbatore Sameera Investments (CSIPL), Shanthi Chandran Enterprises (SCEPL), Shanthi Chandran Investments Coimbatore (SCICPL), and Sheela Traders (STPL). These entities, now wholly-owned subsidiaries of Astrea, collectively contribute 7.08 acres to the total acquisition. Additionally, Astrea has directly acquired 1.95 acres from individual sellers, bringing the total land parcel to 9.03 acres.
The acquisition is part of Astrea’s broader strategy to bolster its retail presence in Tamil Nadu. According to the managing director of the company, this new site will be developed into a greenfield retail project, marking Astrea’s second major retail venture in the state. The first, Phoenix MarketCity and Palladium Chennai, has already demonstrated considerable success, setting a precedent for this new development. In a related development, PML has announced that it, alongside Reco Zinnia (Reco), has finalised a securities subscription and joint venture agreement. As per the agreement executed on August 7, 2024, Reco has invested Rs2.45 lakh in Astrea, acquiring 24,516 equity shares at Rs10 each. Following this transaction, PML holds a 67.10% equity stake in Astrea, while Reco holds 32.90%.
This strategic investment not only highlights Phoenix Mills’ aggressive expansion strategy but also positions Astrea as a significant player in the retail real estate sector. The Coimbatore acquisition is expected to reinforce PML’s market presence and contribute to its growth trajectory in India’s competitive retail landscape.
