Runwal Group Joins Hands With Warburg Pincus To Create $1 Bn Retail Mall Platform

 

Runwal Group has formed a joint venture with an affiliate of private equity firm Warburg Pincus to create a retail mall platform.

Both partners will commit $200 million each in the form of equity and would raise another $600 million in the form of debt to create a corpus of $1 billion, to invest in and develop high quality shopping malls across tier 1, 2, and 3 cities in India, which have a sizeable population and growing disposable incomes.

The platform will look to build large destination malls as well as smaller hypermarket and cinema anchored community malls. Retail malls in several countries have transformed from pure shopping areas into social, community and entertainment centres. The platform would look to capitalise on this trend by adopting mall designs that would offer high quality experience for tenants and customers.

Runwal Group operates four malls in Mumbai, with a total leasable area of approximately 2 million sq ft. This includes its flagship R-City mall in Ghatkopar, which has a total leasable area of 1.2 million sq ft. The platform will be seeded with several pipeline projects that are currently under development and will also have the option of acquiring some of Runwal Group’s operational retail malls.