In Hyderabad’s retail mall project, Lake Shore India Advisory the Abu Dhabi Investment Authority (ADIA)-backed firm bought a majority share from Phoenix Group.
According to the sources, the deal is finalized for approximately Rs. 1,000 crore as it includes construction funding.
The company acquired a 6.5 acre parcel in Hyderabad that estimates to have a development potential of 1.5 million sq.ft. However, the sources said that the Phoenix Group will continue to hold approximately 15% stake in the project (Phoenix Lotus Mall) and the Irish fund Lotus will walk out of the project.
The Hyderabad-based Phoenix Group and Lotus Fund managed by Ajantha Shetty are the equity partners in this project and according to the transaction, the Phoenix Group will develop the project while Lake Shore India will be involved in planning and leasing.
One of the sources said that the Phoenix group also has the option to walk out of the project after completion of the same. However, Shetty will continue as the advisor to the project.
The sources also said that Lake Shore replaced Lotus Fund as the firm failed to make an investment in the last seven years. The Lotus fund has made an investment of merely $5 million since then.