After months of negotiations involving different investors, India’s Hotel Leela Venture has confirmed it will sell four of its hotels and a property to a fund sponsored by Canada’s Brookfield Asset Management for Rp39.5 billion (US$576.4 million).
The shareholding of the company will remain unaffected after the sale.
The company will sell Leela hotels at Bengaluru, Chennai, Delhi and Udaipur and its property in Agra to Brookfield. The Leela brand will also be transferred to Brookfield for all hospitality businesses.
Quoting a statement issued by Leela, Reuters reported that proceeds from this deal will be used to repay existing lenders of the company.
Hotel Leela Venture will continue to operate its hotel in Mumbai and own some land in Hyderabad and its development project of residential apartments with Prestige Developers in Bangalore.