Pantaloons may sell crossroads

The latest buzz in the industry is that Sobo Central, previously known as Crossroads, is being sold by Kishore Biyani's Pantaloon retail to Ajay Piramal of piramal healthcare for Rs 350 crore.

Kishore Biyani is in advanced stages of the negotiation to sell 70 per cent in a holding company that owns the Sobo Central Mall and the transaction could be completed within two months.

Piramal would be looking to complete the transaction through his real estate funds, Indiareit and Sunteck Realty.

Well, Crossroads is a prime location in south Mumbai and in 2006 the Urvi Piramal group sold it for Rs 260 crore to Pantaloon Retail. Biyani converted it into a middle-to-upper luxury mall called Sobo Central in early 2009, but industry experts say footfalls have been low and Pantaloon Retail could do with the cash.

Pantaloon Retail would make almost Rs 100 crore on this deal, but that doesn’t include the cost of having converted it.