Mumbai-based DB Realty Ltd. on Monday said it will acquire shares in Bamboo Hotel Global Centre Pvt., Goan Hotels & Realty Pvt. and BD And P Hotels Pvt. for more than INR 2,300 crore.
DB Realty stated that these transactions constitute related party deals and are conducted on an arm’s length basis. The company emphasized that this move will facilitate its entry into the hospitality industry.
In a regulatory filing, DB 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., is constructing a hotel complex ‘Prestige Trade Centre at Aerocity, New Delhi.
DB Realty will acquire 10,10,000 Class A equity shares in Bamboo Hotel for a total consideration of INR 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.
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 INR 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 INR 339.12 crore in BD And P Hotels (India). BD and P Hotels is a subsidiary of MDHRPL, which holds a 75% stake and owns the Hilton Mumbai International Airport hotel.
