Hotel Leela expects Rs 620 crore from sale of non-core assets

Leela Business Park in Chennai to be sold in the next six months and Leela hopes to raise Rs 200 crore; Also plans to sell land parcel in Hyderabad

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Hotel Leela Venture expects to raise Rs 620 crore by selling non-core assets. The company, which operates luxury hotels and resorts, has a debt of around Rs 4,000 crore on its books.

For instance, it expects Leela Business Park in Chennai to be sold in the next six months and Leela hopes to raise Rs 200 crore from the sale, Vivek Nair, vice-chairman and MD, told CNBC-TV18 on Wednesday. Hotel Leela also plans to sell land parcel in Hyderabad, he said.

The company had 3.85 acres of land at Banjara Hills in Hyderabad, where it had initially planned a luxury hotel, but shelved the plans after significant new supply came up in the area. It also sold its Kovalam property this year and took it back on management contract. Lenders recently approved Hotel Leela's corporate debt restrcturing (CDR) package. As per the CDR package, the company will be debt free by the end of the financial year 2013.

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