Lake Shore acquires Hyderabad mall for Rs 1,000 crore

Abu Dhabi Investment Authority (ADIA)-backed Lake Shore India Advisory has bought majority stake in a retail mall project in Hyderabad from Phoenix Group for about Rs 1,000 crore, inclusive of construction funding, said people aware of the matter. The fund has bought a 6.5 acre parcel in Hyderabad which has a development potential of 1.5 million square feet. "Phoenix Group will continue to hold around 15% stake in the project (Phoenix Lotus Mall) and the Irish fund Lotus will exit the project," said one person, who did not wish to be identified. Hyderabad-based Phoenix Group and Lotus Fund managed by Ajantha Shetty are equity partners in the project. As per the transaction, Phoenix Group will construct the project while Lake Shore India will be involved in planning and leasing. "Phoenix also has an option to exit the project once completed. Shetty will also continue as an advisor to the project," said the person. Another person said Lotus Fund was replaced by Lake Shore as it had failed to invest for the past seven years. Lotus has invested only $5 million since then, he said. Lake Shore India Advisory, Lotus Fund and Phoenix Group could not be reached for comment.