InvestorQ : Why Hotel Leela Venture sold its properties?
Mahima Roy made post

Why Hotel Leela Venture sold its properties?

2 years ago
Hotel Leela Venture Limited (HLVL) entered into a binding agreement with Brookfield Asset Management (Brookfield) to sell is properties. HLVL will be selling its four company-owned Leela hotels located at Bengaluru, Chennai, New Delhi, and Udaipur and the property that it owns in Agra; through a slump sale.
The value of this deal is ₹3,950 crore plus the applicable transaction costs. HLVL will use the sale amount to clear out its debt. Hotel Leela is going through a severe cash-crunch and has defaulted in payment of quarterly interest of Rs 2.12 crore to Life Insurance Corporation of India (LIC). Not only LIC, but the company has also defaulted to serve repayment of its other term loans and NCDs due to a shortage of funds.
This deal with Brookfield includes a transfer of the Leela brand for use of all hospitality businesses. The shareholding of the company would remain unaffected after the sale, said HLVL in a release. The deal between HLVL and Canada's real estate fund Brookfield Asset Management will take around three-to-six months of time frame as the approval of shareholders, lenders and other regulatory and statutory is a must.