Published On:June 14 2014
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Prestige group to develop Hotel Leela's surplus land.
Hotel Leela Venture has signed a joint development agreement with Prestige group to develop its surplus land in Bangalore.
The project, Prestige Leela Residences, will come up on Leela's land on Old Airport Road next to its hotel Leela Palace, at an expected investment of around Rs. 110 crore. The deal is part of Leela Venture's strategy to monetise non-core assets.
Confirming the development, Venkat K Narayana, Executive Director and CFO of Prestige Group, said: 'Leela has offered us 8,027 sq m land next to Leela Palace.' The project is spread over 0.36 million sq ft. 'The Prestige has 60 per cent interest in the project and we plan to take up construction this fiscal,' he added. Similarly, the company has signed an agreement with the Bhartiya Group for managing a Leela Hotel, near the International Airport, with 250 guestrooms and a Convention Centre for 1,500 people.
As part of its non-core asset monetisation drive, the company had sold its 3.5-acre plot at Banjara Hills, Hyderabad. Earlier, it had plans to build a luxury hotel in the area.