Vatika Hotels, the hospitality arm of the Gurgaon-based real estate major Vatika group, has bought back shares held in it by US banking group Goldman Sachs for Rs 3 billion. Now owning 100 per cent of its equity, the company is planning to go for and IPO the third quarter of the 2018 calendar year.
In 2007, the Vatika group had raised Rs 9 billion in the form of equity. Goldman Sachs, the largest investor along with Baer Capital Partners had invested Rs 6 billion in the group, while Wachovia Bank had put in Rs 2 billion, and Zaheer Mauritius Rs 1 billion.
GIC, another leading global investor that had put money in the Vatika group in 2014, remains invested in the group.
The funds generated would be used to take advantage of the newly formed transit-oriented development (TOD) policy. The company plans to increase the capacity of Westin Gurgaon with 200 more rooms, along with additional expansion plans for the Westin resort by 40 keys located in Sohna. Apart from this, Vatika intends to invest in brownfield projects as well, and is currently seeking opportunities in the market. The funds would also be used for the expansion of Vatika Business Centres & Enviro, a premium facility management company.
Vatika Business Centre, India’s first premium business centre service provider, at present has 15 centres spread across New Delhi, Girgaon, Noida, Mumbai, Bengaluru, Chennai, Hyderabad and Pune. It covers over half a million sq ft of area in the country, facilitating more than 5,000 seats, and about 1,000 seats are under development. Backed by growth numbers and cashing in on the opportunities to expand, VBC aims to open 42 centres by the end of 2020. OIt also plans to go abroad with centres in Singapore, Dubai and HongKong.
The group also owns Nukkadwala, the newest chain of quick service restaurants with 10 stores in the National Capital Region at present. It has plans to expand in foreign markets by soon opening stores in Dubai, London, and New York.