Vishal Retail is planning to sell four properties (three shops and a piece of land in Dehradun) for an estimated value of Rs 50 crore to clear debt and partly fund new expansion under the 'V2 Retail' brand.
The earnings will be used to clear debt that is around Rs 30 crore. 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.
The expansion will be financed through internal accrual and money raised from the sale of properties. The company is expecting a sale of up to Rs 10 crore per month through these stores. These stores will be operational by July 30, 2011.
Recently, 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.
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.
