Hotel Leela to get Rs 150 cr for surplus land in Bangalore

Hotel Leelaventure expects to realise about Rs 150 crore by monetising its land adjacent to its Bangalore property — The Leela Palace Bangalore.

The company informed the Bombay Stock Exchange that it has executed a joint development agreement with Bangalore-based developer Prestige Group to develop premium residential apartments on 2.3 acres of surplus land adjacent to its Bangalore property.

The Leela Palace Bangalore is spread over nine acres on Old Airport Road. The surplus land, which the company proposes to monetise, is situated just off Old Airport Road.

The hospitality company expects to realise about Rs 150 crore over the next four years, Mr Krishna Deshika, Director – Finance, The Leela Palaces, Hotels and Resorts, told

Business Line . “Total saleable area is about 3 lakh sq ft, of which Hotel Leelaventure's share would be about 1.2 lakh sq ft,” he said.

Though Prestige Group declined to comment on the project details, Mr Deshika said that the project will take about 42 months for completion. Mr Venkat K. Narayana, Chief Financial Officer, Prestige Group, said, “We have not got into the planning stage, and it would take a few months for us to come out with the details.”

The company is also developing a high-end residential and commercial property with Sky Realty Projects in Pune on a site where it had originally planned to develop a luxury hotel. Earlier this year, Hotel Leelaventure sold its Leela IT park in Chennai for Rs 250 crore. The company hopes to utilise the proceeds from land sale to partly reduce its debt of Rs 3,800 crore.