Thomas Cook plans to monetise real estate assets

Thomas Cook appreciated on news that the company may be looking to monetise its land assets across India. It is understood that cash generated from the exercise will go towards working capital requirements of the company.

Thomas Cook owns 32 properties across India and is sitting on 1,26,000 sq ft of office space. In Mumbai, the company owns over 60,000 sq ft space and has another 43,000 sq ft in the heart of Delhi. This decision comes on  the heels of the company's Institutional Placement Programme (IPP), which was oversubscribed by 22%. According to SP Tulsian of sptulsian.com, the company's South Mumbai property is estimated at about Rs 200-250 crore. He says the company was having a tough time for the last one to one-and-half year and monetisation of assets will help it mobilise about Rs 250-300 crore. But Tulsian warns investors against reacting too much to the news. He sees the stock touching Rs 65 on the upside. "Beyond it the share will find it little tough." The company has appointed JLL (Jones Lang LaSalle), a real estate services firm specialising in commercial property management, leasing, and investment management to help with the monitisation of its land assets.