A consortium composed of listed real estate major Oberoi Realty, Shree Naman Developers and JM Financial Properties and Holdings has been selected by a committee of creditors as the successful resolution applicant for Mumbai-based Hotel Horizon's corporate insolvency resolution process (CIRP). Oberoi Realty informed exchanges that the consortium has received a letter of intent from the creditors on July 14.
Under the resolution plan, the consortium will pay various creditors a total of Rs 919 crore, although the amount may rise. The consortium will be required to pay to the creditors within 45 days of approval of the resolution plan by the National Company Law Tribunal (NCLT).
Hotel Horizon Private Ltd possesses a 7,500 square metres (around 1.9 acre) land parcel in the upmarket Juhu neighbourhood in Mumbai's western suburb, and the hotel has been non-operational, according to official documents part of the resolution process. A land parcel of this size may be lucrative for developers in the area, with residential real estate prices trading above Rs 70,000 per square feet in newer constructions, according to local brokers.
Moneycontrol reached out to Oberoi Realty for a comment on the matter, including the consortium's plans for the land parcel, and the story will be updated once a response is received.
At 2:15pm, Oberoi Realty's shares on the National Stock Exchange were trading 0.7 percent higher at Rs 1,817.30 apiece.
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