Warburg Pincus forms JV with portfolio company
New Delhi based hospitality firm, Lemon Tree Hotels, has formed INR1,400 crore ($315.4 million) joint venture, Oceanus Real Estate Pvt Ltd , with Warburg Pincus that will focus on housing project in India. Lemon Tree will own 51% of the JV with the private equity firm holding the remaining 49%.
The two companies' relationship started in 2006, when Warburg Pincus made an investment in Lemon Tree Hotels and currently own 25.8% stake. Lemon currently owns and operates 14 mid-scale Lemon Tree hotels in India with a total capacity of 1,500 rooms.
Indian newspaper, Economic Times, quoted Patu Keswani, chairman and managing director of Lemon Tree Hotels saying: "The joint venture with Warburg Pincus will develop at least three to four affordable housing projects in Gurgaon." He added: "By mid 2013, we have a plan to own and operate total 20 hotels with 2,800 rooms and then we have a plan to go public by making an IPO."
According to the same article, that besides diversifying into housing, Lemon Tree has put in place a blueprint to expand in its core business within India and explore neighboring markets like Nepal and Sri Lanka.
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