Phoenix Mills to develop residential project with upto 350 units on newly acquired land parcel in Kolkata

Shares of Phoenix Mills Ltd. surged more than three percent on Friday after the company disclosed the plans of developing a residential project on a land parcel recently acquired by its subsidiary in Kolkata.

In a filing to the stock exchanges on Thursday, the company said that Palladium Construction Pvt. Ltd. (PCPL), a wholly-owned subsidiary of Phoenix Mills Ltd., will build a residential development comprising approximately 325 to 350 homes with saleable area of about 1 million square feet.

Phoenix Mills on February 24 had informed the bourses that its subsidiary PCPL acquired a land parcel in Alipore, Kolkata. However, the company had not disclosed the detailed plan on the land use and received many queries regarding the same.

Giving more information about the transaction, Phoenix Mills on Thursday said that Palladium Construction plans to start the development on the site immediately and is currently in the early stages of design development. It expects to obtain all requisite clearances within the next 12 to 18 months and expects to complete construction by 2028-2029.

Further, the firm expects the sales to be completed in around 7 to 8 years from launch, subject to prevailing market conditions, with annual sales volumes estimated to range between 1,00,000 to 1,50,000 square feet.

The real estate developer expects the launch price to be in the range of Rs 15,500 to Rs 16,500 per square feet. Further, it estimates that the launch price will escalate by about 10 percent annually over the project life cycle.

Shares of Phoenix Mills are off the day's high but trade with gains of 1.7 percent at Rs 1,247.30.