 "DB Realty to acquire stakes in 3 hotels for more than Rs 2,300 cr")
Mumbai-based D B Realty Ltd on Monday said it will acquire shares in Bamboo Hotel Global Centre, Goan Hotels & Realty and BD And P Hotels for more than Rs 2,300 crore.
These deals fall into related party transactions and are done at an arm's length basis, D B Realty said, adding this will enable the company to enter into the hospitality business.
In a regulatory filing, D B Realty informed that it has entered into separate share purchase agreements to acquire shares of Bamboo Hotel Global Centre (Delhi) Pvt Ltd, Goan Hotels & Realty Pvt Ltd and BD And P Hotels (India) Pvt Ltd.
As per the filing, Bamboo Hotel and Global Centre (Delhi), a joint venture between Prestige Hospitality Ventures Ltd and Marine Drive Hospitality & Realty Pvt Ltd (MDHRPL), is constructing a hotel complex 'Prestige Trade Centre at Aerocity, New Delhi.
D B Realty will acquire 10,10,000 Class A equity shares in Bamboo Hotel for a total consideration of Rs 608.88 crore.
The property is leased out by Delhi International Airport to Bamboo Hotel for 57 years, including a lease extension of 30 years.
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The total built-up area of the project is about 3.3 million sq ft.
DB Realty will acquire 78,250 equity shares for a total consideration of Rs 1,410.68 crore in Goan Hotels & Realty, which is a wholly-owned subsidiary of MDHRPL.
MDHRPL owns a five-star hotel under the brand of Grand Hyatt Goa, at Bambolim, Goa.
Separately, DB Realty will acquire 2,12,69,325 shares for Rs 339.12 crore in BD And P Hotels (India). BD and P Hotels is a subsidiary of MDHRPL, which holds a 75 per cent stake and owns the Hilton Mumbai International Airport hotel.