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MUMBAI: Subhash Chandra-promoted E-City Entertainment has diluted
26 per cent stake to Infrastructure Leasing & Financial Services
Ltd (IL&FS) for Rs 1 billion.
The funds will be used for real estate development in two new projects
which will require a total investment of Rs 2 billion. "IL&FS
has acquired 26 per cent stake in E-City for Rs 1 billion. We will
be investing Rs 2 billion in two projects, for which we are also raising
a debt of Rs 1 billion," E-City Ventures CEO Atul Goel tells
Indiantelevision.com.
E-City hived off its multiplex business into a company called Fun
Multiplex Pvt Ltd last year, Goel said. The real estate business
is being handled by E-City Entertainment and is setting up malls.
"We decided to hive off the multiplex and real estate businesses
into separate companies. We felt that the investors in real estate
would not necessarily want to take exposure to the multiplex business,"
Goel said.
E-City hived off its multiplex business into a company called Fun
Multiplex Pvt Ltd last year, Goel said. The real estate business is
being handled by E-City Entertainment and is setting up malls. "We
decided to hive off the multiplex and real estate businesses into
separate companies. We felt that the investors in real estate would
not necessarily want to take exposure to the multiplex business,"
Goel said.
The company has already invested Rs 2.17 billion in developing
five projects. E-City Entertainment has put in Rs 600 million for
the Andheri property (130,000 sq ft) in Mumbai, Rs 750 million in
Lucknow (400,000 sq ft), Rs 550 million in Ahmedabad (160,000 sq
ft) and Rs 270 million in Chandigarh (90,000 sq ft). "Three
of our properties are already operational while the one at Lucknow
will stand up by July. In Coimbatore we have acquired 350,000 sq
ft and it should be operational by the end of next year. We are
yet to identify another property but it could preferably be in the
southern region," Goel said.
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