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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.
