Phoenix Mills Expects IRR of Over 15% for Its Forthcoming Kolkata Project
Phoenix Mills Ltd expects an internal rate of return of over 15 per cent on its forthcoming Kolkata project. The company is likely commence sales next year at Rs15,500-16,500 per square feet (sqft) and thereafter sees a 10 per cent annual increase for the next eight years, until the entire project is sold out. The company, through a subsidiary, acquired the 5.5-acre land parcel in Alipore, Kolkata for Rs 414.3 crore. It plans to set up a residential project with 325-350 premium homes, spread over 10 lakh sq ft with a potential gross sales value of over Rs 2,300 crore. The approvals are expected to take 12-18 months after which it would start construction. It also expects to simultaneously commence booking of units. The entire project is expected to be sold out in the next 7-8 years, with an annual sale of about 1-1.5 lakh sq ft. The project would reach completion by 2028-29. Phoenix Mills is primarily a mall developer and operator, but has built residential projects in some select locations. It has a residential project in Bengaluru with a saleable area of 35 lakh square feet.
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