ADIA-backed Lake Shore in talks to acquire Viviana Mall

 01 July 2021

The proposed deal assumes significance as it indicates global investors’ unabated interest in Indian mall developments and confidence that retail consumption will rebound once the Covid-19 pandemic is over.

The Abu Dhabi Investment Authority-backed Lake Shore India Advisory is in talks with realty developer Ashwin Sheth Group and Singapore’s sovereign wealth fund GIC to acquire Viviana Mall in Thane for around Rs 2,000 crore, said persons with direct knowledge of the development.

The proposed transaction will be the largest ever single and operational retail property acquisition in the country.

“The discussions between all three entities have reached an advanced stage and the transaction is expected to be completed soon as the terms are being finalised now,” said one of the persons mentioned above.

The proposed deal assumes significance as it indicates global investors’ unabated interest in Indian mall developments and confidence that retail consumption will rebound once the Covid-19 pandemic is over.

Viviana Mall is spread on a 13-acre land parcel on Thane’s on Pokhran Road and has total lease area of 1.7 million sq ft. It houses one of the largest multiplexes with 14 screens including Imax experience.

GIC had picked up 49% stake in Viviana Mall from Sheth Group in early 2016.

ET’s email queries to GIC and Lake Shore remained unanswered until the time of going to press.

"Based on the speculation, the management at Viviana Mall strongly denies any such developments. We will proceed to updating all our stakeholders and media if any announcement has to be made,” said Viviana Mall’s spokesperson.

ET had reported earlier that the Institutional investors including Blackstone Group, Warburg Pincus, ADIA-backed Lake Shore and Canada Pension Plan Investment Board (CPPIB), through their joint platforms or Indian partners, had shown interest in picking up the property.

Given the increased residential development in and around Thane, the city has also emerged as a major hub for retail consumption, prompting the rise in interest among major retail property developers.

Private equity major Xander Group’s retail arm Virtuous Retail South Asia (VRSA) has acquired a nearly 20-acre prime land parcel in Thane from textile major Raymond for $100 million, or over Rs 710 crore. It is planning to invest an additional $240 million, or over Rs 1,700 crore, to develop the site, taking its total investment to over Rs 2,400 crore.

VRSA is planning to build a 3.7 million sq ft mixed-use city centre project anchored by a 2.4 million sq ft VR retail flagship development. The proposed 2.4-million-sq-ft VR flagship retail mall will offer retail, dining, lifestyle, and entertainment options.

Ashwin Sheth Group is looking to set up a strategic platform to develop and operate retail malls across the country.

In December, the developer entered into a joint venture with Nagpur-based Sethi Group to develop 1 million sq ft mall, Viviana Nagpur, in the city’s south western region near Pratap Nagar.

Recently, GIC also entered into a strategic partnership with The Phoenix Mills to set up a joint venture to develop, own and operate retail-led mixed-use developments in India.

In 2019, Lake Shore had bought a majority stake in a retail mall project in Hyderabad from the city-based Phoenix Group for around Rs 1,000 crore, inclusive of construction funding.