The debt-laden Hotel Leelaventure on Monday entered into a binding agreement with Canadian Private Equity major, Brookfield Asset Management Private Real Estate Fund to sell its four hotels and hospitality operations business for `3,950 crore on a slump sale and going concern basis.
As part of the deal, Hotel Leela Venture will sell its four hotels in Bangalore, Chennai, Delhi and Udaipur, along with the hotel operations business, and 100% shareholding in Leela Palaces and Resorts, which owns property and holds licences for the development of a hotel in Agra. The shareholding of the company will remain unaffected post the completion of transaction, the company said in a statement.
The proceeds of the deal, which will also see the company’s owners transfer the ‘Leela’ brand to Brookfield for all hospitality businesses, will be used to repay existing lenders of the company. “After completion of the aforesaid transaction, all borrowings of the company from all banks and financial institutions would stand repaid,” the company said.