Film distributor and theatre chain operator PVR Ltd on Thursday said it had entered into an agreement with Infinite India Investment Management, a part of the JM Financial Group, for sale and leaseback of its multiplex property in Mumbai for Rs 100 crore.
The seven-screen multiplex property at Phoenix Mills is one of the premier flagship properties of PVR and is among its highest revenue earning multiplexes. The property sold to Infinite India Investment Management will be leased back to PVR Ltd for operating the multiplexes.
“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 Ajay Bijli, chairman and managing director, PVR Limited.
The company currently operates 142 screens across India and plans to add about 50 to 70 new screens in the current financial year.
Infinite India is the investment manager for real estate fund sponsored by the JM Financial Group. The property at Phoenix Mills was previously owned by CR Retail Malls India Ltd, an arm of PVR Ltd. The transaction has been structured in such a manner that Infinite India will fully acquire CR Retail Malls India.
In a filing with the Bombay Stock Exchange, PVR Ltd said its board on Thursday approved the sale of two crore equity shares of Rs 10 each of CR Retail Malls to companies of the JM Financial Group.
“PVR shall receive a sum of Rs 100 crore pursuant to the transaction, in the form of refund of existing loans made to CR Retail and consideration against sale of equity shares,” it said.
