Viceroy completes slump sale of Bangalore division

Hospitality player, Viceroy Hotels Limited, has completed the slump sale of its Bangalore project division to Viceroy Bangalore Hotels Private Limited (VBHPL). In a filing to the BSE on Friday, the company said it had invested Rs 47.3 crore in the equity share capital of VBHPL by way subscription of 5.9 million equity shares of Rs 10 each at a price of Rs 78.96 per share in accordance with the business transfer agreement.

Viceroy Hotels further said VBHPL ceased to be the subsidiary of the company on account of the strategic investment of Rs 74 crore out of Rs 90 crore infused by JP Morgan India Property Mauritius II by way subscription of 7.4 million equity shares of Rs 10 each at a price of Rs 100 per share. Gunjan Bahl and Hrushikesh Kar were inducted as directors on the board of VBHPL to represent JP Morgan India Property, the company added.

Viceroy, which currently operates two hotel properties in Hyderabad under the Marriott and Courtyard brands, had, in March 2011, hived off its Rs 560-crore Chennai project into a separate company to cut debt on its balance sheet.

The 387-room Chennai property, started construction in 2005 at an initial cost of Rs 490 crore, which was later revised to Rs 560 crore.