Key Highlights:

  • Canada
    Pension Plan Investment Board (CPPIB) and The Phoenix Mills Limited (PML) sign
    definitive agreement to develop, own and operate retail-led mixed-use
    developments across India.
  • Island
    Star Mall Developers Pvt. Ltd. (ISMDPL), a PML subsidiary which owns Phoenix
    MarketCity Bangalore, will serve as the platform.
  • CPPIB
    will initially own 30% of the platform with an equity commitment of
    approximately INR 7.24 billion (C$149 million).
  • CPPIB
    plans to invest approximately INR 16 billion (C$330 million), in multiple
    tranches, to own up to a 49% stake in the platform.
  • Pre-money
    enterprise value of ISMDPL is pegged at approximately INR 22 billion (C$454
    million) for this investment.

Toronto, Canada/Mumbai, India – April 5, 2017: Canada
Pension Plan Investment Board (CPPIB) and The Phoenix Mills Limited (PML) today
announced participation in a strategic investment platform, Island Star Mall
Developers Pvt. Ltd (ISMDPL), to develop, own and operate retail-led mixed-use
developments across India.

CPPIB will initially own 30% of the platform with an equity
commitment of approximately INR 7.24 billion (C$149 million). CPPIB plans to
invest approximately INR 16 billion (C$330 million), in multiple tranches, to
own up to a 49% stake in the platform. Pre-money enterprise value of ISMDPL is
pegged at approximately INR 22 billion (C$454 million).

ISMDPL owns Phoenix MarketCity Bangalore, one of the top
performing shopping malls in the country. Opened in 2011, the mall has gross
leasable area of approximately one million square feet and is centrally located
in Whitefield, a prominent residential hub and amongst the largest commercial
areas in Bengaluru.

“We are delighted to partner with The Phoenix Mills Limited
to launch our first retail real estate venture in India where we will focus on
acquiring or developing high-quality retail assets across India’s top cities,”
said Andrea Orlandi, Managing Director, Head of Real Estate Investments –
Europe, CPPIB
. “We believe that India will be a leading source of global growth
in the coming decades and that there will continue to be attractive investment
opportunities for CPPIB. We look forward to expanding our venture with Phoenix
Mills, an experienced retail operator and well-aligned partner.”

The funds invested will be applied towards acquiring and
developing both greenfield assets on newly purchased land banks, as well as
existing operating retail assets that are expected to be transformed into
highly successful malls. PML will manage all development and operational assets
in the platform.

“This is a landmark transaction for Phoenix Mills and a
first-of-its-kind for India’s retail real estate industry. In CPPIB, we have
found a like-minded strategic partner that brings significant experience and
expertise in creating and managing retail assets across the globe. Jointly, we
are committed to creating world-class retail assets to provide an unparalleled
shopping experience to consumers,” stated Atul Ruia, Joint Managing Director,
The Phoenix Mills Limited
.

The Indian retail sector is forecast to see sustained growth
over the long term, primarily due to favourable demographics and the rise of
the middle class. At the same time, international retailers are increasingly
attracted to India as a growth market, which is leading to strong demand for
space in high-quality, well-located shopping malls.

Phoenix-Credits-Worldtravelserver.jpg

About
Canada Pension Plan Investment Board (CPPIB)

Canada Pension Plan Investment Board (CPPIB) is a professional
investment management organization that invests the funds not needed by the
Canada Pension Plan (CPP) to pay current benefits on behalf of 20 million
contributors and beneficiaries. In order to build a diversified portfolio of
CPP assets, CPPIB invests in public equities, private equities, real estate,
infrastructure and fixed income instruments. Headquartered in Toronto, with
offices in Hong Kong, London, Luxembourg, Mumbai, New York City, São Paulo and
Sydney, CPPIB is governed and managed independently of the Canada Pension Plan
and at arm’s length from governments. At December 31, 2016, the CPP Fund
totalled $298.1 billion. For more information about CPPIB, please visit www.cppib.com or follow us
on LinkedIn or Twitter.

About
Island Star Mall Developers Pvt. Ltd.

ISMDPL owns and operates a retail mall
in Bengaluru known as Phoenix MarketCity, Bangalore. In addition, ISMDPL also
has additional development potential to expand the existing mixed-use development.
ISMDPL posted a revenue of INR 1.6 billion (C$34 million) and a net profit of
INR 371 million (C$7.6 million) during the year FY2015-16.

About
The Phoenix Mills Limited (PML)

PML (BSE: 503100 | NSE: PHOENIXLTD) is a leading retail mall developer
and operator in India with approximately 6.0 million square feet of retail
space spread across 8 malls in 6 gateway cities of India. PML is the pioneer of
retail-led, mixed-use developments in India and has developed over 17.5 million
square feet spread across retail, hospitality, commercial, and residential
asset classes.

Key Highlights:

  • Canada Pension Plan Investment Board (CPPIB) and The Phoenix Mills Limited (PML) sign definitive agreement to develop, own and operate retail-led mixed-use developments across India.
  • Island Star Mall Developers Pvt. Ltd. (ISMDPL), a PML subsidiary which owns Phoenix MarketCity Bangalore, will serve as the platform.
  • CPPIB will initially own 30% of the platform with an equity commitment of approximately INR 7.24 billion (C$149 million).
  • CPPIB plans to invest approximately INR 16 billion (C$330 million), in multiple tranches, to own up to a 49% stake in the platform.
  • Pre-money enterprise value of ISMDPL is pegged at approximately INR 22 billion (C$454 million) for this investment.

Toronto, Canada/Mumbai, India – April 5, 2017: Canada Pension Plan Investment Board (CPPIB) and The Phoenix Mills Limited (PML) today announced participation in a strategic investment platform, Island Star Mall Developers Pvt. Ltd (ISMDPL), to develop, own and operate retail-led mixed-use developments across India.

CPPIB will initially own 30% of the platform with an equity commitment of approximately INR 7.24 billion (C$149 million). CPPIB plans to invest approximately INR 16 billion (C$330 million), in multiple tranches, to own up to a 49% stake in the platform. Pre-money enterprise value of ISMDPL is pegged at approximately INR 22 billion (C$454 million).

ISMDPL owns Phoenix MarketCity Bangalore, one of the top performing shopping malls in the country. Opened in 2011, the mall has gross leasable area of approximately one million square feet and is centrally located in Whitefield, a prominent residential hub and amongst the largest commercial areas in Bengaluru.

“We are delighted to partner with The Phoenix Mills Limited to launch our first retail real estate venture in India where we will focus on acquiring or developing high-quality retail assets across India’s top cities,” said Andrea Orlandi, Managing Director, Head of Real Estate Investments – Europe, CPPIB. “We believe that India will be a leading source of global growth in the coming decades and that there will continue to be attractive investment opportunities for CPPIB. We look forward to expanding our venture with Phoenix Mills, an experienced retail operator and well-aligned partner.”

The funds invested will be applied towards acquiring and developing both greenfield assets on newly purchased land banks, as well as existing operating retail assets that are expected to be transformed into highly successful malls. PML will manage all development and operational assets in the platform.

“This is a landmark transaction for Phoenix Mills and a first-of-its-kind for India’s retail real estate industry. In CPPIB, we have found a like-minded strategic partner that brings significant experience and expertise in creating and managing retail assets across the globe. Jointly, we are committed to creating world-class retail assets to provide an unparalleled shopping experience to consumers,” stated Atul Ruia, Joint Managing Director, The Phoenix Mills Limited.

The Indian retail sector is forecast to see sustained growth over the long term, primarily due to favourable demographics and the rise of the middle class. At the same time, international retailers are increasingly attracted to India as a growth market, which is leading to strong demand for space in high-quality, well-located shopping malls.

Phoenix-Credits-Worldtravelserver.jpg

About Canada Pension Plan Investment Board (CPPIB)

Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 20 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, São Paulo and Sydney, CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At December 31, 2016, the CPP Fund totalled $298.1 billion. For more information about CPPIB, please visit www.cppib.com or follow us on LinkedIn or Twitter.

About Island Star Mall Developers Pvt. Ltd.

ISMDPL owns and operates a retail mall in Bengaluru known as Phoenix MarketCity, Bangalore. In addition, ISMDPL also has additional development potential to expand the existing mixed-use development. ISMDPL posted a revenue of INR 1.6 billion (C$34 million) and a net profit of INR 371 million (C$7.6 million) during the year FY2015-16.

About The Phoenix Mills Limited (PML)

PML (BSE: 503100 | NSE: PHOENIXLTD) is a leading retail mall developer and operator in India with approximately 6.0 million square feet of retail space spread across 8 malls in 6 gateway cities of India. PML is the pioneer of retail-led, mixed-use developments in India and has developed over 17.5 million square feet spread across retail, hospitality, commercial, and residential asset classes.

Article Contacts

For More Information:

Canada Pension Plan Investment Board

Dan Madge
Senior Manager, Media Relations
T: +1 416 868 8629
dmadge@cppib.com

Mei Mavin
Director, Corporate Communications
T: +1 646 564 4920
mmavin@cppib.com

The Phoenix Mills Limited

Varun Parwal
VP - Finance & Investor Relations
T +91 22 3001 6737
varun.p@phoenixmarketcity.in 

Mehul Mehta
Dickenson Group
T +91 98202 80325
mehul.mehta@dickensonir.com