Canadian asset management firm and fund Brookfield has bought India’s Leela Palaces & Resorts’ management business and four of its nine assets in the Indian cities of Banguluru, Chennai, Delhi and Udaipur.
MUMBAI, 18 March 2018 -- Hotel Leela Venture Limited (HLVL), announced today that it has entered into a binding agreement with a Brookfield Asset Management (Brookfield) sponspored 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.
The transaction also includes assignment of all Hotel Management contracts currently in operation as well as all management contracts for hotels which are currently under development, along with the employees of the hotels. The total transaction value is RS. 3950 crores plus the applicable transaction costs. This is subject to approval of shareholders, lenders and other regulatory and statutory approvals. Simultaneously, the Promoters who own the Leela brand would also be transferring the Leela brand to Brookfield for all hospitality businesses.
JM Financial Limited acted as the exclusive financial advisor to HLVL for this transaction.
Commenting on the transaction, Mr. Vivek Nair, Chairman and Managing Director of HLVL, 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."
Commenting on the transaction, Mr. Ankur Gupta, Managing Director and Head-India Real Estate, Brookfield Asset Management, remarked, "The Leela is one of the finest hospitality groups in India and over the years it has gained extraordinary recognition from some of the most prestigious authorities on travel and luxury in the world. 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."
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