Provogue ties up with UK's Liberty, lines up Rs1,000 crore investment
16 Oct 2006
Mumbai: Apparel manufacturer, trader and retailer Provogue India Ltd has entered into a joint venture agreement with UK-based Liberty International plc to develop and manage regional shopping centers for the growing organised retail sector in the country.
Liberty International is expected to bring in equity of around Rs202.5 crore, the company said in a filing with the Bombay Stock Exchange (BSE).
Under the agreement, Liberty International would pick up 25 per cent of the equity shares of Provogue's retail infrastructure subsidiary, Prozone Enterprises Pvt Ltd.
Prozone plans to invest Rs1000 crore to develop malls in six centres in India, managing director Nikhil Chaturvedi said.
The investment would be funded through Rs390 crore raised through equity and the rest through debt, Chaturvedi said at a press conference.
The deal is subject to approval by the Foreign Investment Promotion Board (FIPB), it added.
Liberty International has property investments of over 7.5 billion pounds, of which regional shopping centers amount to some 85 per cent. They own nine of the top 25 shopping centres in the UK.
