PVR sells Phoenix Mills Property to JM Financial Fund for Rs 100 crore

After the transaction is completed, PVR will continue to operate the multiplex property on a long-term lease arrangement basis.

By OUR BUREAU | Updated: May 06, 2011, 05.19 AM IST

NEW DELHI: PVR on Thursday sold its multiplex property at Phoenix Mills, Mumbai, to JM Financial's newly-launched Real Estate Income Fund for Rs 100 crore. After the transaction is completed, PVR will continue to operate the multiplex property on a long-term lease arrangement basis. ET had reported on Wednesday that the 100-crore sale and lease back deal was on the anvil and will be announced this week.

The company told BSE that the board of directors of PVR approved the sale of two crore equity shares of rs 10 each of CR Retail Malls (India), its wholly-owned subsidiary, which owns the property, to the fund.

This is an attempt by PVR to become an asset light company. "The sale and lease back transaction unlocks capital for investment into future projects providing a significant impetus to our expansion plans. The transaction also improves the overall return on capital employed and further solidifies our positive outlook on our core business of operating and managing multiplex properties across the country on a long-term lease," said chairman and managing director of PVR, Ajay Bijli. Real estate consulting firm GenReal Property Advisers were advisers to the transaction.

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