Hotel Leelaventure to sell Chennai IT Park building to RIL for Rs170.17 crore
19 Feb 2013
Hospitality group Hotel Leelaventure has agreed to sell its IT Park building in Chennai to Reliance Industries Ltd (RIL) for Rs170.17 crore.
"The company has executed on 18 February 2013 an Agreement for Sale with Reliance Industries Limited to sell the above said property for a consideration of Rs. 170.17 crore," the Mumbai-based company said in a filing with the Bombay Stock Exchange.
The news sent shares in Hotel Leelaventure surging by 15 per cent as investors expect the deal would help the hospitality group reduce its debt of Rs4,250 crore.
In an interview with CNBC-TV18, Vivek Nair, vice chairman and MD, Hotel Leela had said the company would reduce debt by Rs2,750 crore in near future.
The deal will help RIL get ready premises to house its 4G operations, as earlier speculated by the media.
Hotel Leelaventure manages seven hotels in India spread across Bangalore, Gurgaon, Mumbai, New Delhi, Goa, Kovalam and Udaipur, with four under development at Chennai, Agra, Jaipur and Kerala.