Phoenix Mills subsidiary acquires land parcel in Coimbatore worth ₹370.17 crore to develop premium retail destination

Phoenix Mills announced on Wednesday that it had completed the acquisition of a prime city-centric land parcel in Coimbatore, Tamil Nadu, for the development of a premium retail destination. Shares of the firm were trading 0.18% higher on Thursday.

The company said the land has been acquired by its subsidiary Astrea Real Estate Developers through a mix of share purchases and direct land acquisitions. Astrea has paid ₹370.17 crore towards the aggregate consideration, it said.

Shishir Shrivastava, Managing Director at Phoenix Mills said the land is located at a strategic location on Avinashi Road in the vicinity of prominent catchments including prime residential areas like Racecourse road, Peelamedu and Gandhipuram.

“Given the strategic location, the large captive population and the rapid growth expected in Coimbatore, we believe that our upcoming retail centre can cater to the untapped and growing retail demand in this city. This mall will be our second retail development in Tamil Nadu, following the success of our first development in Chennai, namely Phoenix MarketCity and Palladium Chennai,” he said.

During the first quarter of fiscal year 2025, Phoenix Mills reported a 12% year-over-year (YoY) rise in its operating revenue at ₹904 crore. Operating earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 8% YoY to ₹531 crore while EBITDA margin declined to 59% from 61% in the same period a year ago.

Net profit after minority interest and other comprehensive income rose 10% YoY to ₹295 crore during the quarter.

The firm’s office portfolio saw its occupancy rise to 71% in June 2024 from 70% in March 2024. Phoenix Mills said that gross leasing in Q1FY25 stood at approximately 1.50 lakh square feet, of which, about one lakh square feet were renewals and about 0.50 lakh square feet were new leases.

At the same time, income from commercial offices in Q1FY25 stood at ₹50 crore, up 20% over the same period last year. EBITDA stood at ₹32 crore, registering a growth of 33% over Q1FY24.

Shares of the company were have gained over 45% since the beginning of the year. The stock has risen over 93% in the last one year.