Hotel Leela Venture to sell hotels, property to Brookfield

Hotel Leela Venture Ltd Monday announced sale of its four hotels, including one in the national capital, and a property to Canadian investment fund Brookfield for Rs 3,950 crore. It will sell hotels located in Bangalore, Chennai, Delhi and Udaipur as well as 100 per cent sharing holder of the company in Leela Palace and Resorts Ltd, which owns property and holds licenses for the development of a hotel in Agra, Hotel Leela Venture said in a regulatory filing.

Proceeds of the sale "will be paid to the lenders of the company towards repayment of dues," it said. "After completion of the aforesaid transaction, all borrowings of the company from all the banks and financial institutions would stand repaid." Post sale, the company will continue to operate the hotel in Mumbai and own certain land in Hyderabad and the joint development project of residential apartments with Prestige Developers in Bangalore.

"Brookfield will have a right of first refusal over the company's hotel in Mumbai, as a part of the transaction," it said.

(With inputs from agencies.)