Peninsula Land Ltd, Arrow Webtex Ltd form JV to build Business Hotel

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Mumbai, May 20 (UNI) Ashok Piramal Group's real estate arm Peninsula Land Limited (PLL), a leading real estate player in India, and a Arrow Webtex Limited, city-based textile and real estate development firm, have decided to jointly build business hotels across the country.

Commenting on the agreement, Peninsula Land Ltd Executive Vice Chairman Rajeev Piramal said ''With this agreement, both the parties will form a special purpose vehicle (SPV) that will create and build a line of hotels especially geared towards the business traveller.

The hotels will reflect an environment that we believe to be essential to the success and wellbeing of a business person. While the hotels will hold a state-of-the-art business centre, they will nevertheless be affordable for all.'' Arrow Webtex Ltd Chairman Jaydev Mody said ''Arrow has had more than 10 years of expertise in developing and operating real estate projects. We bring to this JV our expertise and knowledge of what makes a venture successful. The USP of this project will be in the structure of Management Company and the hotels that is, we are developing a hybrid version of a timeshare model which will add value for the business traveller.'' ''While we expect the first phase of venture to be rolled out in 30 months, we look forward for a long and prosperous relationship with Peninsula Land Ltd. Together, we are committed to providing our customers the most fruitful environment to do business in,'' he said.

In the first phase of development, there will be an equity infusion of about Rs 100 crore in equal proportion in the SPV by both the partners and the JV proposes to develop 10 hotels of 100 rooms, each aggregating to 1,000 rooms. These hotels are expected to be operational in the next 30 months. The company plans to cover the Western region states like Maharashtra, Gujarat and Goa, with presence in cities like Mumbai, Pune, Nagpur, Nashik, Kolhapur, Ahmedabad, Surat, Jamnagar and Mundra port.

On successfully completing the 1st phase and having made their presence felt in the West zone, the JV plans to penetrate in the Southern region in its second phase targeting the states like Karnataka, Tamil Nadu, Andhra Pradesh and Kerala.

This is subject to necessary approvals, including board, of both the JV partners.

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