(Reuters) -Singapore’s sovereign wealth fund GIC and India’s SAMHI Hotels will establish a joint venture to develop upscale hotel assets in India, with an equity investment plan of up to about $300 million, SAMHI said on Thursday.
As a part of the deal, GIC will take a 35% stake, individually, in three of SAMHI’s units that currently operate four hotels in the cities of Bengaluru and Pune, including two hotels owned by Marriott.
GIC will invest 7.52 billion rupees ($88 million) across the three units, of which 6.03 billion rupees will be majorly used towards scaling down SAMHI’s debt.
The remaining 1.49 billion rupees will be used for funding an under-development hotel in Bengaluru, SAMHI said.
Upon closing of the deal, SAMHI expects its debt to reduce by 5.8 billion rupees, sharply down from the net debt levels, as of 2024-end, of 20.64 billion rupees.
($1 = 85.5310 Indian rupees)
(Reporting by Hritam Mukherjee and Aleef Jahan in Bengaluru; Editing by Rashmi Aich)
