Shares of Advent Hotels International Ltd surged by 17.14% on Monday, hitting a day high of ₹164. This significant rise followed the company's announcement of a major stake sale in its subsidiary to Prestige Estates Ltd, valued at ₹504 crore.
Strategic Partnership Forms New Joint Venture
Advent Hotels confirmed in an exchange filing that it had agreed to sell a 50% stake in Advent Convention and Hotels International Ltd (ACHIL), previously its wholly-owned subsidiary, to Prestige Estates. This transaction converts ACHIL into a 50:50 joint venture (JV) between the two entities. Following the completion of the deal, ACHIL will no longer be a wholly-owned subsidiary of Advent Hotels, though Advent Hotels will retain its remaining 50% economic and voting rights.
The partnership grants Prestige Estates equal economic and voting rights in ACHIL. This strategic alliance is specifically linked to the development of a significant commercial real estate project located in Mumbai.
Mumbai Real Estate Project Details Emerge
Further details from Advent Hotels revealed that Valor Estate Ltd and its subsidiary, Esteem Properties Pvt Ltd, have also entered into an agreement with Prestige Estates. This agreement pertains to a 21,978-square-metre land parcel situated in Sahar, Andheri East, Mumbai, which is owned by Esteem Properties.
ACHIL, now operating as a joint venture, will serve as the special purpose vehicle responsible for developing this commercial project on the assigned land. The collaboration underscores a focused effort to leverage expertise in the thriving Mumbai real estate market.
In related market activity, shares of Prestige Estates also saw a positive movement, climbing 2.94% to reach a high of ₹1,716.80 on the same trading day.