Phoenix Mills sees over 15% IRR on its Kolkata housing project.

Phoenix Mills Ltd. expects an internal rate of return of over 15 per cent on its forthcoming Kolkata project.

The company is likely commence sales next year at ₹15,500-16,500 per square feet (sqft) and thereafter sees a 10 per cent annual increase for the next eight years, until the entire project is sold out.

The company, through a subsidiary, acquired the 5.5 acre land parcel in Alipore, Kolkata for ₹414.3 crore. It plans to set up a residential project with 325-350 premium homes, spread over 10 lakh square feet with a potential gross sales value of over ₹2,300 crore.

The approvals are expected to take 12-18 months after which it would start construction. It also expects to simultaneously commence booking of units .

The entire project is expected to be sold out in the next 7-8 years, with an annual sales of about 1-1.5 lakh sqft. The project would reach completion by 2028-29.

Phoenix Mills is primarily a mall developer and operator, but has built residential projects in some select locations. It has a residential project in Bengaluru with a saleable area of 35 lakh square feet.

HBL