Hotel Leelaventure to retain 25% in Chennai, Delhi properties.

Luxury hospitality firm Hotel Leelaventure, which is in talks with sovereign wealth funds to sell its prime properties in Chennai and Delhi, expects to retain at least 25 per cent stake in these ventures, as it wants to hold on to the 'Leela' brand name.

In 2011, when the Leela Kovalam was sold, the company took the property back under a management contract, so that it could retain the brand name. But it did not retain any stake in the property.

'Since we want to retain the Leela brand, we want to float a special purpose vehicle, through which we will control a 25-26 per cent stake, while the balance will be with the investor who buys into our property,' said Vivek Nair, Chairman and Managing Director.

'We also want to forge joint ventures with sovereign wealth funds. At the moment, we are still waiting to get the right valuations for our properties.' In the past, the company had divested its holdings through the QIP (qualified institutional placement) and FCCB (foreign currency convertible bonds) routes. 'Now, we will be replacing them with sovereign wealth investors to bring equity into the company,' added Nair.

HBL