ICICI Prudential AMC is all set to buy 50 per cent stake in the hospitality venture of Chennai-based XS Real Properties for Rs 150/175 crore. The venture in which XS Real promoter holds the remaining stake will set up 8-10 hotels across southern cities with Rs 1,000 crore outlay. This will be ICICI Prudential AMC''s second investment in Chennai, after its recent Rs 62 crore infusion into another budget hotel chain Sabari Inn. The AMC has set up a dedicated Rs 800 crore fund for real estate play in the country.
The hospitality venture will raise about Rs 600-700 crore as debts apart from the two promoters equity contribution of around Rs 300/350 crore, banking sources added. The initial locations for the hotels could be the main cities like Bangalore, Hyderabad, Chennai and Kochi. This will be XS Real''s second brush with fund action. Last year, it inked a special purpose vehicle (SPV) deal with Singapore''s GIC for a Rs 1400 crore residential project in Chennai. XS Real, which stakes claim to popularizing the ''bunglow apartments'' concept, has also announced foray into IT Parks, SEZs and integrated townships. Fund action has been hotting up in the Indian hospitality sector, especially in the budget to four star hotel category. India''s organised hospitality sector currently boasts of a 90,000 room inventory, which is expected to add about 1,50,000 rooms more by 2010.
The hospitality venture will raise about Rs 600-700 crore as debts apart from the two promoters equity contribution of around Rs 300/350 crore, banking sources added. The initial locations for the hotels could be the main cities like Bangalore, Hyderabad, Chennai and Kochi. This will be XS Real''s second brush with fund action. Last year, it inked a special purpose vehicle (SPV) deal with Singapore''s GIC for a Rs 1400 crore residential project in Chennai. XS Real, which stakes claim to popularizing the ''bunglow apartments'' concept, has also announced foray into IT Parks, SEZs and integrated townships. Fund action has been hotting up in the Indian hospitality sector, especially in the budget to four star hotel category. India''s organised hospitality sector currently boasts of a 90,000 room inventory, which is expected to add about 1,50,000 rooms more by 2010.
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