Oberoi Realty has made a significant move in the Mumbai real estate market, leading a consortium that has won the resolution plan for Hotel Horizon Private Limited (HHPL) with a bid of ₹919.00 crore. This development marks a strategic expansion for the company in the hospitality sector.

Key Highlights of the Acquisition

• Winning Bid: The consortium, comprising Oberoi Realty Limited, Shree Naman Developers Private Limited, and JM Financial Properties and Holdings Limited, secured the deal with a ₹919.00 crore offer.
• Prime Location: Hotel Horizon's property is situated on approximately 7,500 square meters of land overlooking the Arabian Sea in Juhu, Mumbai.
• Approval Process: The Committee of Creditors (CoC) of HHPL approved the resolution plan, with the Resolution Professional issuing a Letter of Intent (LOI) to the consortium.

Transaction Details

The resolution plan outlines a comprehensive strategy for the acquisition:

• Payment Structure: The ₹919.00 crore payment (along with any additional amounts required by law) will settle outstanding claims against HHPL, including unpaid CIRP (Corporate Insolvency Resolution Process) costs.
• Implementation Timeline: The payment is due within 45 days of the resolution plan's approval by the National Company Law Tribunal (NCLT).
• Ownership Transfer: Upon implementation, the consortium or a special purpose vehicle (SPV) will acquire 100% ownership and control of HHPL.
• Share Subscription: The consortium or SPV will subscribe to ₹1.00 crore of fresh shares in HHPL to secure full ownership.

Strategic Implications

This acquisition aligns with Oberoi Realty's core business activities and represents a significant expansion in the hospitality sector. The company stated that the proposed acquisition "is in furtherance to the main business activity of the Company."

Regulatory Approvals

The deal's completion is subject to several regulatory steps:

• Approval from the National Company Law Tribunal, Mumbai Bench
• Potential additional approvals from other regulatory authorities, courts, or tribunals as required by applicable laws

About Hotel Horizon Private Limited

• Incorporation: December 6, 2004
• Business Focus: Developing a retail cum hotel building in Juhu, Mumbai
• Recent Financial Performance: Not available in the latest regulatory filings

This acquisition by Oberoi Realty and its consortium partners demonstrates a strategic move to capitalize on prime real estate in one of Mumbai's most sought-after locations. As the hospitality sector continues to evolve, this deal could position Oberoi Realty for significant growth in the luxury hotel and retail space.

Investors and market watchers will likely keep a close eye on how this acquisition impacts Oberoi Realty's portfolio and future performance in the real estate and hospitality sectors.

Oberoi Realty Limited , a prominent real estate developer, has made a significant move in the hospitality sector by leading a consortium that has successfully acquired Hotel Horizon Private Limited (HHPL) for ₹919.00 crore. The deal, which gives the consortium control of a prime property in Juhu, Mumbai, is now awaiting final approval from the National Company Law Tribunal (NCLT).

Acquisition Details

The consortium, comprising Oberoi Realty Limited, Shree Naman Developers Private Limited, and JM Financial Properties and Holdings Limited, submitted a resolution plan in the corporate insolvency resolution process (CIRP) of Hotel Horizon Private Limited. The Committee of Creditors (CoC) of HHPL approved this plan, and the Resolution Professional issued a Letter of Intent (LOI) declaring the consortium as the Successful Resolution Applicant.

Key Points of the Acquisition

• Purchase Price: The resolution plan provides for a payment of ₹919.00 crore, with potential additional amounts to comply with applicable laws.
• Settlement: The amount will be paid to various creditors in full and final settlement of their outstanding claims against HHPL, including unpaid CIRP costs.
• Property Details: HHPL holds a prime piece of land measuring approximately 7,500 square meters, overlooking the Arabian Sea in Juhu, Mumbai.
• Implementation: The resolution plan will be implemented either through the consortium or a special purpose vehicle (SPV) to be incorporated by the consortium.

Strategic Importance

This acquisition aligns with Oberoi Realty's main business activities and represents a strategic expansion into the hospitality sector. The Juhu property, with its prime location and sea-facing views, presents significant potential for development in the retail and hospitality segments.

Financial Implications

Upon implementation of the resolution plan, the consortium or its SPV will subscribe to ₹1.00 crore of fresh shares of HHPL, resulting in 100% ownership and control of the company. This move is expected to strengthen Oberoi Realty's portfolio in the premium real estate market of Mumbai.

Regulatory Approvals

The completion of this acquisition is subject to several regulatory approvals:

1. Final approval from the National Company Law Tribunal (NCLT), Mumbai Bench
2. Any additional approvals required from other regulatory authorities, courts, or tribunals under applicable laws

Conclusion

This acquisition marks a significant step for Oberoi Realty in expanding its presence in the hospitality sector. The prime location of the Hotel Horizon property in Juhu, Mumbai, offers substantial potential for development. As the deal awaits final NCLT approval, industry observers will be keenly watching how this acquisition impacts Oberoi Realty's future growth strategy in the real estate and hospitality sectors.