HDIL sells multiplex biz for Rs 105 cr, to focus on slum rehab projects

Mumbai-based realty major Housing Development and Infra has sold its multiplex business HDIL Entertainment, which runs 33 multiplexes under the brand name Kulraj Broadway,to Carnival Films for Rs 105 crore as part of the group’s strategy to exit non-core business and reduce its debt.

“The sale of HDIL Entertainment to Carnival Films has been part of the group’s strategy to exit its non-core business and fully focus on its core business. This will also enable HDIL to reduce its debt as planned,” said Hariprakash Pandey, vice-president finance and investor relations, HDIL.

HDIL is also planning tomonetise its land parcel outside Mumbai. However, the developer will not sell any major land parcels in the city.

“We will reduce debt by another Rs 600-800 crore by FY15-end,” Pandey told CNBC-TV18.

Yesterday, the Economic Times had reported that HDIL has put its nearly 1 million square feet commercial complex called Premier Commercial at Kurla in Mumbai on the block and is looking to raise over Rs 500 crore from this under-construction project. However, Pandey refused to comment on the land sale.

Recently, HDIL also sold a 45 per cent stake in its subsidiary that owned a hotel property at Juhu in Mumbai for Rs 290 crore, the proceeds of which were used for repayment of debt.It also sold a land parcel in Delhi.

As of March 2014, the company’s consolidated net debt stood at Rs 3,284.76 crore while standalone debt was Rs 2,441 crore.The company managed to cut its debt by Rs 600 crore in the year-ended March.

HDIL will now focus on developing its land parcels in and around Mumbai, especially its slum rehabilitation projects.

The company also plans to put its 100-acre land parcel at Kukatpally in Hyderabad on block as this market has witnessed a revival in the last one month.