As part of an ongoing exercise to ease its debt burden, The Leela Group is set to sell its Resorts property in Kovalam. The property, Leela Resorts Kovalam, is being sold for 500 crore to NRI Ravi Pillai.
Mr. CP Krishnan Nair ,Chairman Leela Group Leela Group, and NRI Ravi Pillai confirmed the deal.
Resorts property was originally developed by state-run ITDC and has a commanding view of Arabian Sea, was the need to reduce debt.
About Leela Venture...!
Leela Venture, a stock market listed company, had accumulated debt of Rs. 3,830 crore at the end of FY 2010-11 owing to capital expenditure of over Rs. 4,000 crore, which is currently underway. This includes Rs. 3,200 crore on new hotels in Udaipur and Delhi. Leela Venture also expects to spend Rs.1,200 crore on building a hotel in Chennai, which is scheduled to open in 2011, December.
The company has been looking to sell properties across the country to cut its debt which, at close to Rs. 4,000 crore, is more than double its market cap of 1,782 crore. In 2011, March, the company announced plans to sell an IT park in Chennai for 950 crore.
Mr. CP Krishnan Nair ,Chairman Leela Group Leela Group, and NRI Ravi Pillai confirmed the deal.
Resorts property was originally developed by state-run ITDC and has a commanding view of Arabian Sea, was the need to reduce debt.
About Leela Venture...!
Leela Venture, a stock market listed company, had accumulated debt of Rs. 3,830 crore at the end of FY 2010-11 owing to capital expenditure of over Rs. 4,000 crore, which is currently underway. This includes Rs. 3,200 crore on new hotels in Udaipur and Delhi. Leela Venture also expects to spend Rs.1,200 crore on building a hotel in Chennai, which is scheduled to open in 2011, December.
The company has been looking to sell properties across the country to cut its debt which, at close to Rs. 4,000 crore, is more than double its market cap of 1,782 crore. In 2011, March, the company announced plans to sell an IT park in Chennai for 950 crore.
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