Hotel Leela Venture Limited (HLVL) has entered into a binding agreement with a Brookfield Asset Management (Brookfield)-sponsored private real estate fund to sell, by way of slump sale, four company-owned Leela hotels located at Bengaluru, Chennai, New Delhi and Udaipur and the property that it owns in Agra.

The total transaction value is ₹3,950 crore plus the applicable transaction costs.

The proceeds of the sale would be used to repay the debt, HLVL said in a regulatory filing.

The above transaction, which is expected to be completed in three-to-six months, is subject to the approval of shareholders, lenders and other regulatory and statutory approvals.

The transaction also includes assignment of all hotel management contracts currently in operation and or under development along with the employees of the hotels.

Simultaneously, the promoters would also be transferring the Leela brand to Brookfield for all hospitality businesses. The shareholding of the company would remain unaffected after the sale, said HLVL in a release.

JM Financial Ltd. acted as the exclusive financial advisor to HLVL for the deal.

HLVL would continue to operate the hotel in Mumbai and own certain land in Hyderabad and the joint development project of residential apartments with Prestige Developers in Bengaluru. Brookfield will have a right of first refusal over the company’s hotel in Mumbai, as a part of the transaction.

“Hotel Leela is rated amongst the top hospitality brands in the world and I am confident that the brand will receive a boost and be further strengthened and continue to be known for its world—class services,” said Vivek Nair, chairman and managing director, HLVL.

Having restructured its debts under the corporate debt restructuring (CDR) mechanism in September 2012, HLVL promoters had been evaluating various options for a viable restructuring.

During 2017-18, the hotel undertaking reported turnover of ₹581 crore.