RMZ to buy Four Seasons Bangalore in $100m deal

BANGALORE: Southern IT Park developer RMZ Corp is set to buy India’s second Four Seasons hotel project in Bangalore for over Rs 400 crore, in which Wall Street bellwether Goldman Sachs has controlling stake, said sources directly aware of the matter.

The sources added that RMZ’s final offer, which includes taking over a debt of Rs 180 crore from State Bank of India, could potentially value the luxury hospitality project a shy under $100 million (Rs 620 crore).

The buyout, expected to be completed before the year end, comes after a six-month-long bid process that saw the participation of global fund houses, GIC of Singapore, Xander, and Tishman Speyer including bigwig developers K Raheja Corp, Embassy Group, Oberoi Realty, and Shriram Properties. Investment bank MAPE was advising Goldman Sachs on the sale process.

Goldman Sachs owns 74% stake in the 1-million sqft lifestyle project, located close to the IT City’s northern suburb of Hebbal. Bangalore-based Century Real Estate Holdings holds the remaining 26% stake in the project. Meanwhile, Qatar Investment Authority (QIA), the sovereign wealth office of the Arab state of Qatar, has invested $300 million into RMZ Corp through an equal combination of debt and equity.