Credit Suisse To Acquire 10-15% In Park Hotels For $55 Million
Mon, 07/16/2007 - 14:57 —Swiss financial services company Credit Suisse’s real estate fund is picking up 10-15% stake for $55 million (Rs 220 crore) in the Park Hotels chain in a structured deal. The deal puts the valuation of the closely-held Apeejay Surrendra Hotels at Rs 1,500-2,200 crore, placing it among the top five hotel companies in the country, reports Business Standard. Credit Suisse is likely to have a representative on the board of the hotel company and help it chalk out its long-term growth strategy, the business daily says. ICICI Securities is the advisor to Credit Suisse for this deal.
According to Hindustan Times, Park Hotels plans to build eight new hotels and create a pan-India presence with the infusion of capital. The expansion, to be the largest for Park Hotels, is aimed at catapulting the company into the top five in the country.
Credit Suisse was reported in January to be raising close to $1 billion (Rs 4,000 crore) to invest in the real estate sector in the country. This is Credit Suisse’s second investment in the real estate sector, the first being its acquisition of 75 per cent in a Rs 300-crore infotech park-cum-five-star-hotel project of developer Vascon Engineers, based in Pune. Industry experts say the foreign company could invest $1 billion in the next two years in the Indian real estate segment.
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