Brigade Hotel Ventures Limited has informed the Exchange about the Company Signs MOA to take on Lease the Premises located at World Trade Center, Chennai
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Brigade Hotel Ventures has signed a Memorandum of Agreement to take on lease 67,977 sq ft of super built-up area for guest rooms at the World Trade Center (WTC) in Perungudi, OMR Chennai. The lease is for a period of 16 years from the date of execution of the lease deed. The counterparty is M/s. Perungudi Real Estates Private Limited, which is a fellow subsidiary and the developer of WTC Chennai. The transaction is a related party deal but has been carried out at arm's length basis, and the company holds no shares in the counterparty entity.
This is an expansion of the company's hotel footprint in Chennai under a long-term 16-year commitment, signalling confidence in the OMR hospitality market. Since the deal is with a group company (related party), investors may want to monitor the lease terms and rental pricing to ensure arm's length fairness over the long term.