MUMBAI: Multiplex major PVR has sold its multiplex property at Phoenix Mills, Mumbai to JM Financial Group for a consideration of Rs 1 billion.

PVR has signed a sale and leaseback agreement with Infinite India Investment Management, the investment manager for real estate funds sponsored by the JM Financial Group.

Indiantelevision.com was the first to report that PVR would be selling its Mumbai property at a valuation of Rs 800 million-Rs 1 billion.

Under the arrangement, JM Financial Group has agreed to purchase the share capital of CR Retail Malls, the wholly owned subsidiary of PVR that owns the multiplex at Phoenix Mills.

PVR will receive a sum of Rs 1 billion in the form of refund of existing loans made to CR Retail and consideration against sale of equity shares of CR Retail.

Post completion of the transaction, PVR will continue to operate the multiplex property on a long-term lease arrangement basis.

Commenting on the development PVR CMD Ajay Bijli said, "We are delighted to partner with Infinite. The sale and lease back transaction unlocks capital for investment into future projects providing a significant impetus to our expansion plans. The transaction also improves the overall return on capital employed and further solidifies our positive outlook on our core business of operating and managing multiplex properties across the country on a long term lease basis."

The seven-screen multiplex property at Phoenix Mills is one of the premier flagship properties of PVR and is amongst the highest grossing multiplexes in India.