The board of Hotel Leelaventure on March 18 approved the sale of four of its five luxury properties owned by Leelaventure, prime land holding in Agra, intellectual property rights and management contracts for a sum of Rs 3,950 crore to Canadian asset management firm Brookfield asset management.
The properties sold are located in Delhi, Chennai, Udaipur and Bengaluru. But as per reports its oldest Hotel which is in Mumbai is not under consideration of deal. Hotel Leelaventure also said that the deal will not bring change in the shareholding pattern of the company.
“The total consideration payable to the company for the transaction is Rs 3,950 crore subject to adjustments on account of net working capital plus the transaction cost. The agreed amount will be paid to the lenders of the company in accordance with the terms of the definitive agreements towards repayment of dues owed by the company to its lenders,” Hotel Leelaventure commented on the deal.
Earlier in last year the company restructured its debt under the CDR mechanism. The company explored various options for debt restructuring is part of that, including the sale of hotels it owned. It is also working toward monetizing its non-crore assets and equity infusion.
Under the leadership of the late Capt. CP Krishnan Nair, Hotel Leelaventure spent a staggering Rs 3200 crore for building two hotels – Delhi (Rs 2,000 crore) and Chennai (Rs 1,200 crore). Located at the busy Chanakyapuri area, the Leela Delhi was the costliest hotel in India at its time of completion. The Delhi property was formally opened in April 2011 while the Chennai hotel was opened in 2013.