INDIA BUSINESS WORLD - JULY - AUGUST - 2007
The Month that was ...
SARAF HOTELS GROUP BUYS BALAJI HOTELS
SARAF Hotels Group, part of Mauritius-based Saraf Industries, has bought Chennai-based Balaji Group's incomplete luxury hotel project from Citibank for Rs 250-275 crore.
The troubled hotel venture, which has been in the making for more than 10 years, passed into the hands of financial institutions after the promoter group defaulted.
Citibank acquired the project from its creditors Industrial Finance Corporation of India and Tourism Finance Corporation of India for Rs 235 crore early this year. The hotel has an inventory 380 rooms spread over 6 lakh sq ft.
Saraf Industries MD Arun K Saraf confirmed the deal. "We have completed the transaction with Citibank for over Rs 250 crore," he said. The Saraf family, a long term ally of Hyatt Corporation, said the property will be managed by the US hospitality giant.
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