Mumbai-based Carnival Group has agreed to acquire engineering and construction firm Larsen & Toubro Ltd's commercial real estate projects in Chandigarh for Rs 1,795 crore (around $267 million).
The deal includes Elante Mall, Hyatt Luxury hotel and office space with a central courtyard, the privately held media and entertainment group said in a statement.
“This acquisition will help us to expand our capabilities and allow us to make inroads into newer markets,” said Shrikant Bhasi, chairman of Carnival Group.
Carnival, which runs a regional cinema chain under Carnival Cinemas banner, has been on an acquisition spree. The deal in Chandigarh is the group's third real-estate acquisition, after Leela Infopark in Kochi in July last year and Leela Technopark in Thiruvananthapuram in August this year.
In December last year, the group had acquired Big Cinemas, the multiplex business of Anil Ambani’s Reliance Group. It also bought Glitz Cinemas, part of Capital 18, a subsidiary of Mukesh Ambani’s Network 18 Media earlier this year.
Bhasi said the Chandigarh project will be run as a separate unit and will be led by its current management team.
Spread across 20 acres, Elante has a an entertainment zone with a multiplex and a food court. The retail space hosts various premium national and international brands along with a mix of a hypermarket, departmental stores, a sports bar and a bowling alley. "This project has good rental yield," said AC Dinesh, Carnival's finance director.
Carnival Group also produces movies and reality shows. It owns brands like DBell, Café Sabrosa and Rasam in its hospitality segment along with Carnival food courts.