The board of Hotel Leelaventure on March 18 approved the sale of four of five luxury properties owned by the company, prime land holding in Agra, intellectual property rights and management contracts for a sum of Rs 3,950 crore to Canadian firm Brookfield.
The four properties sold to the private equity company are based in Delhi, Chennai, Udaipur and Bengaluru. Its oldest hotel, based in Mumbai, has not been sold as per details of the deal. Hotel Leelaventure also said that this transaction will not lead to any 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 said in a statement.
In September. the Nair family-controlled company restructured its debts under the corporate debt restructuring (CDR) mechanism. The hotel company, which is based in Mumbai evaluated various options for a viable restructuring, including sale and of hotels, monetisation of non-core assets, equity infusion and debt refinancing by investors.