Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
»
1-min read

Hotel Leela Venture to Sell Hotels, Property to Canadian Firm Brookfield For Rs 3,950 Crore

The transaction includes assignment of all hotel management contracts currently in operation as well as all under-development, along with the employees of the hotels, Hotel Leela Venture said in a BSE filing.

PTI

Updated:March 18, 2019, 8:21 PM IST
facebookTwitterskypewhatsapp
Hotel Leela Venture to Sell Hotels, Property to Canadian Firm Brookfield For Rs 3,950 Crore
Image for representation.
Loading...

New Delhi: Hotel Leela Venture on Monday announced sale of four hotels, including one in the national capital, and a property to Canadian investment fund Brookfield Asset Management for Rs 3,950 crore.

The company has entered into a binding agreement with a Brookfield Asset Management sponsored private real estate fund to sell, by way of slump sale, four owned Leela hotels located at Bangalore, Chennai, Delhi and Udaipur and the property that it owns in Agra, Hotel Leela Venture said in a BSE filing.

The transaction includes assignment of all hotel management contracts currently in operation as well as all under-development, along with the employees of the hotels, it added.

"The total transaction value is Rs 3,950 crore plus the applicable transaction costs," the filing said.

Simultaneously, the promoters who own the Leela brand will also be transferring the Leela brand to Brookfield for all hospitality businesses, it added.

Proceeds of the sale "will be paid to the lenders of the company towards repayment of dues," the filing said.

"After completion of the aforesaid transaction, all borrowings of the company from all banks and financial institutions would stand repaid," it added.

Commenting on the development, Hotel Leela Venture Chairman and MD Vivek Nair said: "The Leela is rated amongst the top hospitality brands in the world and I am confident that the brand will receive a boost and be further strengthened and continue to be known for its world-class services".

Post sale, the company will continue to operate the hotel in Mumbai and own certain land in Hyderabad and the joint development project of residential apartments with Prestige Developers in Bangalore, the filing said.

Brookfield will have a right of first refusal over the company's hotel in Mumbai, as a part of the transaction, it added.

"We are excited with this opportunity and look forward to completing this transaction at the earliest, while ensuring that all operations remain unaffected. We expect the Leela hotels to continue to be market leaders," Brookfield Asset Management MD and Head-India Real Estate Ankur Gupta said.

JM Financial acted as the exclusive financial advisor to Hotel Leela Venture for this transaction, the filing said.

Shares of Hotel Leela Venture closed at Rs 11.08 per scrip on BSE, up 1.09 per cent from its previous close.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months. Use code FREEDOM.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Indiabulls Hsg 550.75 -0.11
HDFC 2,100.00 -0.84
Reliance 1,278.00 -0.80
Yes Bank 79.45 3.79
HDFC Bank 2,227.70 -0.08
Company Price Change %Gain
SBI 290.95 0.38
Indiabulls Hsg 551.10 -0.04
Yes Bank 79.45 3.79
Maruti Suzuki 5,975.15 2.74
SpiceJet 143.50 3.02
Top Gainers
Company Price Change %Gain
UPL 549.05 4.14
Yes Bank 79.45 3.79
Power Grid Corp 211.15 2.92
Maruti Suzuki 5,975.05 2.73
IndusInd Bank 1,439.10 2.73
Company Price Change %Gain
Yes Bank 79.45 3.79
Power Grid Corp 211.25 2.85
Maruti Suzuki 5,975.15 2.74
IndusInd Bank 1,438.25 2.70
Axis Bank 675.55 1.86
Top Losers
Company Price Change %Gain
TCS 2,165.10 -1.78
Vedanta 144.40 -1.47
HCL Tech 1,062.75 -1.25
BPCL 351.20 -0.92
HDFC 2,100.00 -0.84
Company Price Change %Gain
TCS 2,163.50 -1.87
Vedanta 144.30 -1.54
HCL Tech 1,061.65 -1.37
HDFC 2,098.75 -0.91
Reliance 1,277.40 -0.85

Live TV

Loading...
Countdown To Elections Results
To Assembly Elections 2018 Results