Lemon Tree Hotels has announced the acquisition of 70% stake in Hamstede Living Private Limited. Post acquisition, Hamstede will become a wholly owned subsidiary of the Company, the statement said.
“In terms of the provisions of Regulation 30 of the Securities and Exchange Board of India (Listing Obligation and Disclosures Requirements) Regulations, 2015, we would like to inform that the Board of Lemon Tree Hotels Limited has approved acquisition of 70% shareholding of Hamstede Living Private Limited (herein after as “Hamstede”) on March 30, 2021 from other existing shareholders of the Hamstede subject to necessary formalities and execution of documentation in this regard,” the exchange filing said.
Consequent to acquisition, Hamstede shall become a wholly owned subsidiary of the Company. The Company had entered into a joint venture with Magnolia Grove Investment Ltd, an affiliate of Warburg Pincus (Magnolia) in the month of December’ 2018 in Hamstede to carry the business of student housing / co-living for working professionals. Hamstede which was initially incorporated as Wholly owned subsidiary of the Company, became a Subsidiary of Magnolia, which owned 67.50 % stake in Hamstede. The other shareholders in the Hamstede include Patanjali Govind Keswani (along with its affiliate) holding 2% stake and Rahul Pandit (0.50% stake).
Hamstede’s main objective is to construct, acquire, develop, operate and lease short and long-stay real estate projects, with a primary focus on student housing, co-living for working professionals/adults and multi-family users.
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