PVR is ready to sel its multiplex at Phoenix Mill mall in central Mumbai at a price of 80-100 crore, according to a senior official.
Nitin Sood, PVR CFO said “We plan to sell the property and take it back on lease. We aim to close the transaction by this financial year.” PVR Phoenix, has a extensive 65,000 square feet area. It is the sole property owned by the theatre chain.
By selling the Phoenix Mill property PVR is set to finance its future capex requirements, said Angel Broking’s research report , published on Monday , after meeting Mr. Sood. PVR intends to start 57 screens this year.
The report says that PVR purchased the property nearly 5 years back for nearly 60 crore and spent 25 crore more. The report added, “It (the sale) will also boost the company’s RoCE (return on capital employed) as the deal would unlock substantial cash, which is currently locked in”.
With the sale, the company can widen its operations, but the rentals can be as steep as 1 crore a month, according to real estate analysts. The per sq ft rate in central Mumbai is nearly 150-200 .
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