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Carnival Group in talks to buy L&T Realty's Elante Mall

People in the know say a Rs 1,900-cr deal is likely to be signed by next month

Reghu Balakrishnan  |  Mumbai 

Carnival, a media & entertainment group based in this city, is in advanced discussion with Larsen & Toubro (L&T) Realty to acquire the latter's Chandigarh mall, Elante.

People in the know say a Rs 1,900-crore deal is likely to be signed by next month. Elante Mall spread across 1.15 million sq ft. There are three distinct facilities - a retail mall, office complex & hotel with central courtyard. Construction of a 215-room five-star hotel of Hyatt Regency is on at the premises.

Sources say L&T had initially asked for Rs 2,500 crore and this has gone down to Rs 1,900 crore. Singapore-based sovereign fund GIC and private equity major Blackstone were also trying for a buyout.

Asked to comment, an L&T spokesperson said the company does not comment on market speculation. Shrikant Bhasi, chairman, Carnival Group, also refused to comment. The Carnival Group has interests in hospitality, media & entertainment and multiplexes.

It is present in Kerala, Karnataka, Tamil Nadu, Maharashtra, Madhya Pradesh, Uttar Pradesh and West Bengal. It was recently in the after an acquisition of HDIL's multiplex chain, Broadway Cinema, for Rs 110 crore in July. Carnival had also acquired the Leela Group's information technology park in Kochi the same month, for Rs 280 crore. The IT park has annual revenue of Rs 30 crore through lease rentals from 53 tenants.

Carnival Group has a cinema arm which owns 125 screens across the country. It has plans to add 300 by 2015, mainly through acquisition. Carnival Cinemas is also one among the trying to acquire Reliance ADAG's BIG Cinemas.

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First Published: Sun, October 19 2014. 23:42 IST