In a stock exchange filing on Monday, Hotel Leela Venture announced the sale of its properties to Canadian firm Brookfield Asset Management for. These include the hospitality brand’s properties in Delhi, Chennai, Delhi, and Udaipur. Additionally, their hotel in Agra is also said to be on sale.
The deal also comprises of all assets and liabilities related to the properties, hotel management contracts currently in operation and for those currently under development.
Simultaneously, the promoters, owning the Leela brand will also transfer their role to Brookfield. However, the shareholding of the Leela brand will remain unaffected.
Leela Venture’s debt exceeds INR 3000 crore. Proceeds from this slump sale of assets will be used to repay the lenders of the company. In the exchange filing, Leela Venture has stated that following the completion of the transaction “all borrowings of the company from all banks and financial institutions would stand repaid.”
Ankur Gupta, Managing Director, and Head-India Real Estate, Brookfield Asset Management said, “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.”