CPP Investments sells 49% stake in JV with Phoenix Mills for $630 million

Canada Pension Plan Investment Board (CPP Investments) has agreed to sell its 49% stake in Island Star Mall Developers Pvt. Ltd (ISMDPL) to Phoenix Mills Ltd (PML) and its affiliates, ending an eight-year retail real estate partnership with one of India’s largest mall operators.

The transaction is expected to generate net proceeds of about $630 million (about ₹54,500 crore or Canadian $871 million) for the Canadian pension fund, subject to closing adjustments.

ISMDPL was launched in 2017 as a joint investment platform to develop retail-led mixed-use projects across India, starting with Phoenix MarketCity in Bengaluru and expanding to three additional development assets.

The venture marked one of CPP Investments’ earliest bets on the country’s growing urban consumer economy.

Announcing the exit, Hari Krishna V., managing director and head of real estate India at CPP Investments, said the investment had delivered strong returns while capitalizing on India’s long-term retail opportunity.

“The Indian retail sector has experienced consistent growth, driven largely by favorable demographics and the expanding middle class,” he said. “Through our longstanding partnership with Phoenix Mills, a seasoned retail-led mixed-use operator in India, we have been able to capture opportunities within this market. This investment generated strong returns for the CPP Fund.”

CPP Investments said India remains a key part of its global portfolio strategy. “With net assets totaling C$30 billion in India, we continue to explore investment opportunities in the country across industries,” the fund noted.

While the sale marks a full exit from ISMDPL, the two institutions will continue their partnership through other joint ventures, including a regional retail center in Kolkata and an office-led mixed-use project in Mumbai.

Headquartered in Toronto and managing C$714.4 billion globally as of 31 March, CPP Investments is among the most active global pension funds in India, with exposure across public and private equity, real estate, infrastructure and credit.

It operates independently of the Canada Pension Plan and maintains offices in Mumbai, Hong Kong, London, and other major financial centers.