Hotel Leela to sell land to Lunkad Realty

Hotel Leela Venture has dropped it’s plans of building a hotel in Pune and is selling 50% equity in the 9 acres land to Lunkad Realty, three independent sources close to the development said. Hotel Leela is expected to get Re 280 crores as part of the deal for a land the company had bought for Rs 80 crores a few years back.

Lunkad Realty, a Pune-based developer, is expected to build a high-end residential project on the land. As part of the agreement, about 50% of the proceeds of the sale will be given to Hotel Leela over the next 3 years.

Hotel Leela had earlier planned to build a hotel on the land parcel along with service apartments but, company source says “the plan has been changed as the Pune market looks saturated. “

While the two parties have firmed up the joint venture agreement, the announcement is expected in the next few days. Both, Hotel Leela and Lunkad Realty declined to comment on the development.