A few private equity funds are in the race for the property and a deal is expected to be announced this week.
PVR, however, will continue to run its cinema theatre in the same property by adopting the sale and lease back model. In this model, which is common in western countries, the company sells its property and then leases it back from the buyer. Sources in the company confirmed a deal was on, but PVR promoters could not be reached till late on Wednesday.
Last year, the company had said that “it was evaluating various options to fund its long-term expansion plans and, as part of the same, may consider sale and lease back of the Phoenix Mill property as one of the options.”
The strategy was to become an asset light company and use the funds generated to concentrate on growing its business through the organic leasing route. The company currently owns 142 screens in 31 theatres.
The Phoenix Mills property is owned by CR Retail Malls (India), a wholly-owned subsidiary of PVR. The seven-screen multiplex at Lower Parel is part of a prime retail and entertainment destination in Mumbai.
Source : Economic Times