March 19, 2019- After having a 25year alliance terminated with Kempinski Hotels in 2013, things have not gone so well for Leela. As today Leela venture announced that it would be selling four of its hotels, a property in Agra and all of its hotel management contracts to Canadian investment fund Brookfield Asset Management FOR $576.41, why? To pay back their debts.
Brookfield will be buying the properties in Bengaluru, Chennai, Delhi and Udaipur, in addition to a property in Agra for INR3,950 crore. Leela venture explained that they entered the binding agreement with the Canadian company to sell the properties by a slump sale.
The transaction also includes assignment of all hotel management contracts that are currently in operation as well as all under-development, along with the employees of the hotels, it added. However, the company added, There is no change in the shareholding pattern of Leela Venture - they will be s few hotels light!
Talking about the transaction, 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 Leela hotels to continue to be market leaders.
However, as of March 26 2019. Hotel Leelaventure that was recently acquired by Canadian investment fund Brookfield Asset Management however, shareholders may yet have a say as According to a public listed regulatory filing“for sale of the Company’s Hotel Operations Undertaking and approval for sale of the company’s shareholding in Leela Palaces and Resorts Limited, a wholly owned subsidiary of the Company.”
The company said that its board had approved the selling of their hotels in Delhi, Bengaluru, Chennai and Udaipur and a property in Agra for a total of INR3,950 crore ($576.41m), but they are now reportedly seeking a nod from its shareholders to complete on the binding agreement Leela venture has entered the with the Canadian company to sell the properties by a slump sale.