Shares of Phoenix Mills rose 5% to Rs 184.50 following news that the company is in talks for selling its commercial property in Kurla, valued around Rs 300 crore.
Gayatri Ruia, development director with Palladium, a mall brand promoted by Phoenix was quoted in Hindustan Times saying, "We are in talks with 2-3 buyers for sale of property. We expect a price of around Rs 15,000 per sqft. We may opt to sell the property to more than one buyer. " According to the company, the property in Kurla commands a rental of Rs 100-300 per sqft. Though unwilling to share the names, the company said that the buyers include those who want to use the property or give it on lease.
Phoenix Mills along with HBS Realtors, Mumbai, and Pradhan Housing, Hyderabad, hold 80% share in Offbeat Realtors while IL&FS, Edelweiss and NPC Capital, a German investor, hold the remaining 20%.
The 25-acre plot was bought in 2006 for Rs 235 crore. The total cost of the under-construction Kurla property is pegged at Rs1,550 crore. The sale of the property is in line with the group's expansion plans. The company is expanding its reach at seven locations in tier-2 and tier-3 cities through joint ventures.
