Thomas Cook, the world renowned travel and tour provider and agency, has informed that it will monetize its realty assets in India. The decision is taken mainly to cut short its debts.
Thomas Cook has over 32 realty properties across India. The group has recently appointed Jones Lang LaSalle for monetizing some of these properties. The group hopes to earn up to Rs.300 Cr., through monetizing its properties.
Thomas Cook owns over 60,000 sq. ft. of commercial space in Mumbai. The group also owns 43,000 sq. ft. in New Delhi. The South Mumbai property alone is estimated at around Rs.200 to Rs.250 Cr.
Thomas Cook plans to monetize its realty assets to reduce debts.
While informing the media their plan to monetize the realty assets, company spokesperson said that the amount will be used for funding the working capital requirements of the group.
The group aims to cover up or cut short their debt with the amount raised from monetization of the properties. The monetization will be done through Institutional Placement Program (IPP).
The company is reported to have a tough time in the last one to one and half years. The company has to find some emergent fund for erasing their debt. This is the reason behind their decision to monetize the realty assets. The company aims to raise around Rs.300 Cr by the way of monetization.
The company has appointed real estate consultant firm Jones Lang LaSalle India to handle the monetization. The real estate consultants will find takers for leasing the property.
Thomas Cook to monetize its realty assets.
Commenting on the monetization plan of Thomas Cook, some property experts say that the investors must be cautious to invest with the firm. They say that the investment over Rs.65 per share is risky and they ask the investors to fix the deal only if the price apiece is below Rs.65.
Monetization of the realty assets is always considered as one of the best and easiest ways to lower the debts. The market watchers are looking forward how this will help the group reduce its debt.