Brookfield Asset Management Inc. is poised to acquire at least four of five luxury hotels and a large land parcel from embattled Hotel Leelaventure Ltd. for approximately 45.00 billion Indian rupees in a deal expected to close in early 2019, Mint (India) reported, citing three people with knowledge of the matter.
According to the report, the potential transaction, which is expected to be announced within a month, will mark the global alternative asset manager's entry into India's hospitality sector and will help shore up the debt-ridden Hotel Leelaventure's balance sheet. The company had outstanding debt of 37.99 billion rupees as of March.
Brookfield will likely buy out the "Leela" brand and acquire a large land parcel in Agra and at least four out of five luxury hotels in Hotel Leelaventure's portfolio, which comprises more than 1,400 rooms across New Delhi, Bengaluru, Chennai, Mumbai and Udaipur, the publication added.
The publication could not retrieve a comment from Brookfield on the matter as of press time.
As of Dec. 14, US$1 was equivalent to 71.93 Indian rupees.