Singapore’s GIC has acquired a stake in hotel-owning companies controlled by SAMHI Hotels and has also entered a joint venture to create a US$300m (€264m) platform to develop upscale hotel assets in India.

The sovereign wealth fund has agreed to pay the Indian company INR7.52bn (€78m) for a 35% stake in its subsidiary companies that own five hotels in India, which will seed the platform.

Bombay Stock Exchange-listed SAMHI Hotels said the transaction involved three of its subsidiaries that own Courtyard & Fairfield by Marriott Bengaluru, Hyatt Regency Pune and recently acquired Trinity Hotel, also in Bengaluru. The fifth hotel trades under the Westin brand and is also located in Bengaluru.

It said that over the next two years, GIC would invest a further INR1.49bn to help fund the capital expenditure for the renovation of these hotels.

SAMHI Hotels said the transaction follows “our stated strategy of capital recycling and will lead to significant reduction in debt and, partnership with a global investor of GIC’s stature for funding further growth”.

Ashish Jakhanwala, chief executive and managing director at SAMHI said: “We are pleased to announce this transformational partnership with GIC. We have a strong track record in the hotel sector in India and GIC brings unparalleled institutional capabilities for us to benefit from.

“In addition to helping us strengthen our balance sheet, this partnership gives us tremendous firepower to grow our portfolio,” said Jakhanwala.

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