Sahara Group has put up for sale the luxury hotels it acquired over the last three years — The Plaza and Dream Downtown in New York and Grosvenor House in London. An Arab business family said to have made a GBP one billion offer for all of them, stated a report by Palak Shah in Economic Times.
If the deal goes through, Sahara stands to get about Rs 4,000 crore, or almost three times what it invested in the hotels, after repaying its debt to Bank of China of close to USD one billion against the properties.
Dealmakers in Europe stated that Sahara would be the only business group globally to have earned that kind of return on investment in hospitality since the 2008 financial crisis. Subrata Roy, Founder and Head, Sahara Group, has been in talks with royal and business families in the Middle-East and Europe to sell the hotels for more than two months now, said sources.
Sahara needs to repay holders of debentures that the capital market regulator said were sold in violation of rules. The Securities and Exchange Board of India (Sebi) was backed by the Supreme Court, which asked Sahara to refund the money.
Sahara has said it has repaid much of the amount, but the regulator disagrees. The 494-room Grosvenor House, once home to the Duke of Westminster, was purchased by Sahara in 2010 from Royal Bank of Scotland for GBP 470 mn.
In 2012, Sahara bought the Dream Downtown featuring 315 loft-style rooms and suites and The Plaza with 230 rooms for close to USD 800 mn. Bank of China's total credit facility against Grosvenor is USD 476.83 mn.
If the deal goes through, Sahara stands to get about Rs 4,000 crore, or almost three times what it invested in the hotels, after repaying its debt to Bank of China of close to USD one billion against the properties.
Dealmakers in Europe stated that Sahara would be the only business group globally to have earned that kind of return on investment in hospitality since the 2008 financial crisis. Subrata Roy, Founder and Head, Sahara Group, has been in talks with royal and business families in the Middle-East and Europe to sell the hotels for more than two months now, said sources.
Sahara needs to repay holders of debentures that the capital market regulator said were sold in violation of rules. The Securities and Exchange Board of India (Sebi) was backed by the Supreme Court, which asked Sahara to refund the money.
Sahara has said it has repaid much of the amount, but the regulator disagrees. The 494-room Grosvenor House, once home to the Duke of Westminster, was purchased by Sahara in 2010 from Royal Bank of Scotland for GBP 470 mn.
In 2012, Sahara bought the Dream Downtown featuring 315 loft-style rooms and suites and The Plaza with 230 rooms for close to USD 800 mn. Bank of China's total credit facility against Grosvenor is USD 476.83 mn.