IL&FS India Realty Fund II, promoted by IL&FS Investment Managers and Milestone Capital Advisors, will buy a third of a subsidiary of Asian Hotels (West) promoted by Sushil Gupta, in a Rs 70-80 crore deal.

The deal is expected to

be announced on Monday (July 12).

“The private equity major will be investing ab­out Rs 70-80 crore for a 30-40 per cent stake in Aria Hotels and Consultancy Services, which owns Hyatt Regency hotel near the Mumbai international airport and also a new hotel to be constructed at the Delhi international airport,” officials associated with the transaction told Financial Chronicle.

"We will be disclosing the details about the deal on July 12," said Sushil Gupta, chairman and managing director, Asian Hotels (West).

Aria Hotels and Consultancy Services was recently awarded a piece of land, for which a development agreement has been signed with Delhi airport, for a five-star hotel in the proposed Aerocity — Hospitality District, New Delhi. Aria also owns the Hyatt Regency at Sahar in Andheri East, Mumbai, which is a five-star hotel with over 400 rooms and suites in addition to a number of residences which are taken on rent by long-staying guests such as expatriates. The Mumbai hotel that has a health club, an outdoor pool, a sauna, a fitness facility, tennis courts and an onsite spa is expected to benefit from the revival in the economy and increased flow of foreign travellers to India’s commercial capital, said hospitality industry experts.

Asian Hotels (West) was incorporated as Chillwinds Hotels and came into existence by way of a scheme of arrangement and demerger with the erstwhile Asian Hotels, now known as Asian Hotels (North) and Var­dhman Hotels, now known as Asian Hotels (East); which became effective on February 11. On the sch­eme becoming effective, the Mumbai undertaking was demerged and vested in the Gupta-controlled company whose shares are to be listed on both Bombay Stock Exchange and National Stock Exchange.

The name of the company was again changed to Asian Hotels (West) with

effect from February 12.

IL&FS Milestone Realty Advisors, a joint venture between Milestone Capital Advisors and IL&FS Investment Managers through its real estate fund IL&FS Milestone Fund, recently acquired 74 per cent in 24x7 HCC Park, a 1.8 million square feet commercial property in Vikhroli, Mumbai, making it the largest investment by a REIT structured fund in India till date.

Valued at around Rs 775 crore, 247 HCC Park is located on LBS Marg, Vikhroli, in the central suburbs of Mumbai.