DLF sells theatre business to PVR

DLF, the largest real estate developer in the country by market capitalisation, has sold its cinema business, DT Cinemas, to theatre operator PVR for Rs 22 crore in cash and 2.56 million equity shares of PVR, or 10% stake on fully diluted basis.

According to the agreement, PVR will be the exclusive multiplex anchor tenant for all existing and future retail malls of the developer.

DT Cinemas has a portfolio of 29 screens, of which 26 screens are currently operational in various locations in North India.

Currently, DT Cinemas are spread across in Delhi, Gurgaon and Chandigarh exclusively in DLF malls, which would help PVR gain entry into lucrative estates at reasonable leases.
Both the companies are expecting to save on synergies as PVR would gain on the existing infrastructure at key locations for a faster ramp-up, while DLF would save on costs such as operational expenses such as staff cost and annual maintenance, etc.

“The partnership with PVR allows us to focus on our core business of real estate while ensuring the highest quality of entertainment being offered to the retail customers is commensurate with DLF standards,” Pia Singh, who is heading DLF’s entertainment venture, said in a statement.

DLF owns and operates up-market malls in North India under the brand name DLF Place, Emporio and City Centre. DLF had earlier said that to monetise assets it will sell its wind power business for Rs 900 crore and exit Delhi convention centre for Rs 850 crore.