Vishal Retail on Wednesday said it plans to
sell four properties for an estimated value of Rs 50 crore
to clear debt and partly fund new expansion under the 'V2 Retail' brand.
"We plan to sell four properties (three shops and a piece of land in Dehradun) which are valued around Rs 50 crore. The proceeds will be used to clear debt that is around Rs 30 crore," Vishal Retail Chairman and Managing Director R C Agarwal said.
The company is in the process of setting up eight new stores (five in Delhi-NCR, two in Himachal Pradesh and one in Jamshedpur) with a total area of one lakh square feet.
"We are expecting a sale of up to Rs 10 crore per month through these stores, this store will be operational by July 30, 2011," Agarwal said.
He said the expansion will be funded through internal accrual and money raised from the sale of properties.
Vishal Retail's shareholders have approved changing the company's name to V2 Retail and its plan to enter real estate business.
"Within the next three months the name will be changed from Vishal Retail to V2 Retail," Agarwal said.
The company, however, does not have any immediate plans to enter the real estate sector.
"If in the future any opportunity arises we have enabled our self through the postal ballot. Right now we do not have any plan to enter into the real estate business," he said.
In March this year, Vishal Retail had announced sale of its retail business to the Sriram Group company, Airplaza Retail Holdings and the wholesale business to private equity firm TPG Wholesale for a total consideration of Rs 70 crore.
In 2009, Vishal Retail got into financial trouble and piled up debt of around Rs 730 crore. It was forced into a corporate debt restructuring (CDR) programme.
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