Hotel LeelaVenture sells Chennai IT Park Building to Reliance

Hotel-LeelaventureHotel Leelaventure has said announced that it has sold its IT Park Building in Chennai to Reliance Industries under a deal valued at Rs. 170.17 crore.

The sale of the building is a part of the company's plans to reduce its debt, which touched Rs. 4,750 crore as on March 2012. The company is aiming to reduce its debt by Rs. 2,750 crore in the coming future with the help of measures like sale of non-core assets, partial stake sale in some hotel projects and new partnerships with developers.

LeelaVenture is also considering an asset light model that involves hotels on managing contracts. The lenders of the company have already agreed to a Corporate Debt Restructuring plan, which indicates that the company might be able to get its debt level under control in the long term.

The company recorded a 15 per cent increase in sales in September 2012 quarter and its losses fell marginally to Rs. 98 crore compared to Rs. 108 crore in same quarter of the previous year.

Shares of the company increased 15 per cent after the announcement to the markets today. The shares were trading 10 per cent higher at Rs. 26.75 on the Bombay Stock Exchange(BSE).