HDFC Property Fund is in advanced talks with prospective buyers to sell its stake in The Windflower Resorts and Spa for about Rs 100 crore, nearly three times its investment of Rs 30-35 crore, people aware of the development said.
The Bengaluru-based hospitality company operates a chain of boutique resorts in locations such as Puducherry, Coorg, Bengaluru, Vythiri and Bandipur, and has plans of expanding to other parts of the country.
HDFC Property Fund, the private equity arm of HDFC Ltd set up in 2005, had acquired about 20% stake in Windflower Resorts and Spa, said one of the persons, who did not wish to be identified.
In response to ET’s queries, a spokesperson of HDFC Property Ventures, the holding company of HDFC Property Fund, said the private equity arm has a stake in The Windflower Resorts and Spa through its offshore fund. “Currently, we are in asset management phase of this investment.
As per our underwriting, exit is envisaged through IPO of the company. Currently, the company is in its growth phase and acquiring new assets/management contracts to increase the geographical coverage,” the spokesperson said.
The spokesperson further said that HDFC Property Fund’s exit is envisaged in 12-18 months from now. “The company is largely South India focused and we are helping them get visibility and obtain contracts in West and North India. Also, during this period we expect public markets to be more conducive for a boutique hospitality company like The Windflower Resorts and Spa,” the spokesperson said.
