Thomas Cook has appointed Jones Lang LaSalle (JLL) for monetizing its realty assets in India. The global tour provider agency aims to cut short its debts through monetizing its assets.
Mounting debts has prompted Thomas Cook to monetize its real estate properties in India. The global tour provider agency has already appointed Jones Lang LaSalle (JLL) for conducting the lease and monetization policy.
The group owns over 32 properties in India. Their properties are in some of the top cities and at some prime locations. This will, thus, enable them to earn up to Rs.300 Cr. The property experts say that the group can gain around Rs.200 to Rs.250 Cr from its Mumbai property alone.
In Mumbai, the group owns over 60,000 sq. ft. of commercial space. The group has another 43,000 sq. ft. in New Delhi as well.
While confirming their monetization plan, the spokesperson of Thomas Cook said that they have already entrusted the task to JLL. JLL India will be responsible for managing our property, the spokesperson of the group added.
Raising the fund through monetizing real estate assets, the group hopes to find capital for the expansion of the group. The fund will be raised through institutional placement program -IPP.
The last one to one and half years were a tough time for the group. Thus they wanted to find some emergent cash for wiping their debts off. As always, monetization of properties is taken as the final resort for the group.
Soon after the announcement of monetization plans, property experts warned the investors to be cautious. They say that the investment will be beneficial only if the shares are below Rs.65 per apiece. Both the market watchers and the group officials are looking forward as how this monetization policy helps them.