Newstrack

Atlas Hospitality to develop Market City for Phoenix Mills

Other hospitality plans in the pipeline

Sayoni Bhaduri - Mumbai

Shishir Srivastava

Atlas Hospitality, a subsidiary of Phoenix Mills, is developing the group's new mixed-use development project - Market City. Phoenix has undertaken various initiatives including SPVs to accelerate its growth and size of operations. Rs 3.5 billion of the proceeds will go towards the subscription of Rs 3 million equity shares of Atlas Hospitality, representing 75 per cent of its issued and outstanding equity capital. While Atlas Hospitality has SPV shares to enable building of hotel assets, Phoenix Mills is investing in commercial and retail spaces.

Market City properties are being developed in Mumbai, Bangalore, Chennai, Pune and Agra. Shishir Shrivatava, CEO (Hospitality & New Initiatives), said, "Spread over an area of two and a half to four million square feet, these city-centric properties will have commercial office space, retail outlets as well as hospitality outlets." The hospitality outlets include three, four, and five-star hotels. The entire project will take approximately two to three years to be completely developed. The average cost of construction for each of these Market City properties is approximately between Rs 225 to Rs 350 crore.

Shrivastava adds, "The basic idea is to create a community centre like a lake district or an underground aquarium. These places will form community spaces or destinations where a family can spend an entire day." The group is also exploring options for growth in the cities of Hyderabad, Kolkata and Raipur. Within 2010 and 2012, all these places will be operational. The concept for the Market City in Chennai has been designed by Rockwell and the ones in Bangalore, Pune and Mumbai were designed by Benois. However, the implementation architect will be Shekhar Patki.

Shrivastava said that the group is also exploring options to develop budget hotels, but it depends on the availability of an operating partner. "We are looking at three to four properties in the mid market segment depending on the city and location. Accordingly, we have identified properties in Goa and Jaipur." It is also in talks for developing serviced apartments in Bangalore, Chennai and Pune.

Phoenix Mills, together with its fully-owned subsidiary Pallazzio Hotel & Leisure, has signed a ten-year exclusive management contract with Shangri La Hotels & Resorts to operate its upcoming hotel at High Street Phoenix, Mumbai. The luxury hotel will have between 300 to 400 rooms and boast of a sky lobby on the top floor. It is expected to be fully operational by the end of 2009. Phoenix Mills is also the promoter for Galaxy Entertainment, which handles Sports Bar and Sports Bar Express.