BSEL Infrastructure sells stake in hotel project

BSEL Infrastructure sells stake in hotel projectBSEL Infrastructure Realty Ltd has sold its stakes in BW Highway Star Hotel project at Balewadi, Pune. The firm had 17 percent stake in BW project and it has informed the Bombay Stock Exchange about sell out.

1,058,824 shares of face value Rs 10 each has been sold to Kamat Hotels (India) for Rs 79,411,800 while remaining 941,176 shares to Unity Realty and Developers
(subsidiary of Unity Infraprojects) for Rs 70,588,200.

Experts believe that ongoing global financial crisis is a major cause that prompted BSEL Infrastructure Realty Ltd to get out of the project.

It may be recalled that BSEL and Unity and Kamat Hotel had formed a joint venture earlier this year to develop the project. The company had 2,000,000 shares in the joint venture and a special purpose vehicle was formed to complete the project. Clearwater Capital (P), Cyprus is a significant stake holder in the project.

The shares of company declined 3.3 per cent and closed at Rs 16.41 at the Bombay Stock Exchange. Total of 74,205 shares were traded at BSE on Tuesday.