Tata Group's Indian Hotels buys balance stake in co-holding Sea Rock asset  

Tata Sons-promoted Indian Hotels Company (IHCL) has announced the signing of a binding agreement for the acquisition of the balance stake in the holding company that owns Sea Rock Hotel asset in Mumbai.

IHCL will acquire 14.28 percent equity interest in ELEL Hotels and Investments Limited (ELEL) from the Nanda family who have been shareholders since 2009.

IHCL did not disclose the acquisition price. However, a disclosure in its recently released annual report said that the company would pay Rs 250 crore for the deal. This values the property at over Rs 1,666 crore, which is more than double the Rs 800-crore valuation it got in 2009.

This will make IHCL the 100 percent leasehold owner of the Sea Rock Hotel site by December 31, 2021. With the signing of this agreement, IHCL has eliminated one of the multiple hurdles in the redevelopment of the Sea Rock hotel site.

The Mumbai-headquartered company is also fighting a public interest litigation (PIL) over the use of floor space index (FSI) for this property. Environmental clearance is also awaited for the project.

“The visionary redevelopment of Sea Rock promises to be not only another defining landmark in India’s commercial capital of Mumbai but also an opportunity to build an iconic sea front hotel in South Asia.” said, Puneet Chhatwal, Managing Director and Chief Executive Officer in a press release.