India’s Sahara Group told the country’s Supreme Court on Tuesday that it was close to an agreement to sell the Marriott-operated Grosvenor House hotel in London to the state of Qatar, according to mutliple reports citing people familiar with the matter. Sahara acquired the hotel in London’s Mayfair district in 2010 for £470 million (US$672 million based on today’s exchange).
Sahara is also reportedly negotiating to refinance loans with Russian lender VTB Bank on its majority stakes of two New York hotels – The Plaza and Dream Hotel Downtown, according to people present at Tuesday’s court hearing. Sahara’s attorney said in a statement that the deals would help raise 22 billion rupees (US$324 million) to 23 billion rupees (US$339 million).
The group reportedly has also submitted an application to sell the Sahara Star Hotel in Mumbai, its 42% stake in Force India Formula one team and four aircraft.
The proceeds, which are expected in 30 to 40 working days, could be used in part to pay US$1.5 billion in bail that the court has set for Sahara founder Subrata Roy, who has been in jail for nearly two years for allegedly failing to pay about US$5.5 billion owed to Indian bondholders.
Sahara has denied the government’s allegations and has said that it has already paid most of the money owed to investors.