Expect to close Phoenix Mills property sell by March: PVR

Film exhibitor, producer and distributor PVR Ltd today said it expects to close a deal to sell its property at Phoenix Mills in Mumbai by March next year, which could fetch it up to Rs 100 crore.

 "We are hoping to close the deal by the end of this fiscal," PVR Chief Financial Officer Nitin Sood told PTI without specifying the expected fund inflow from the sale.

 However, according to analyst estimates, the deal is expected to generate upto Rs 100 crore for PVR.

 "The company expects the deal to rake in Rs 80 crore to Rs 100 crore cash, which will help fund its future capital expenditure needs," Angel Broking, analyst Anand Shah said.

 Spread across 65,000 square feet, the property is currently managed by the company’s wholly-owned subsidiary, C R Retail Mall and it houses a multiplex there.

 "The company had acquired the property at Rs 55-60 crore and invested Rs 20-25 crore in fit-outs. A deal by the end of fiscal 2011, would unlock substantial cash, which is currently locked in," Angle Broking said in its report.

 The brokerage firm, said PVR is looking to sale and lease back of its property at Phoenix Mills and will continue to operate its multiplex there.

 In the current fiscal, PVR has plans to invest Rs 50 crore to Rs 60 crore in the exhibition business. The company has already set up 13 screens since April this year and another six are in the pipeline.

 "For the current fiscal, the plan is to add about 50 new screens, which will entail a capital expenditure of about Rs 50-60 crore," Sood said.