Indian real estate developer RMZ Corp is set to buy the second Four Seasons hotel project in Bangalore. The proposed deal is valued at USD100 million, according to sources directly aware of the situation. The said unnamed sources were cited in a report published by The Times of India.
The sources also said RMZ’s final offer includes a debt takeover of Rs 180 crore from State Bank of India. This could potentially add up to a value of just under USD100 million (Rs 620 crore). The buyout is expected to close before the end of 2013, the report said.
Goldman Sachs holds a 74% stake of Four Seasons Bangalore. The remaining 26% stake is owned by Century Real Estate Holdings, said the report.
One of the sources said earlier Goldman was looking through a detailed commercial checklist on the Four Seasons project before transferring shareholdings to RMZ. Outstanding dues with contractors will be settled first before purchasing the stake of their original landholders and partners, the report explained.
Talks for retiring a portion of the buyout have already started. RMZ will bring in a private equity firm into the acquisition vehicle to accomplish this, The Times of India reported.
Via : Vcpost.com