6/24/23, 4:38 PM HDFC to hold auction of two hotels after Prudent ARC makes binding offer - The Economic
nding offer - The Economic Times
Industry
English Edition | 24 June, 2023, 04:38 PM IST | Today's Paper
HDFC to hold auction of two hotels after Prudent
ARC makes binding offer
By Sangita Mehta, ET Bureau Last Updated: Jun 23, 2023, 03:26 AM IST
Synopsis
Prudent ARC's binding offer of ₹311 crore has triggered a Swiss challenge auction for the
hotel properties with total loans of ₹507 crore. Prudent's offer equates to a recovery of
61% for the housing finance company. HDFC has invited counteroffers from other asset
reconstruction companies (ARCs) by June 26, a notice issued by the housing finance
company stated.
Agencies
HDFC, India's largest housing finance
company, is likely to sell a loan
portfolio comprising two Ghaziabad-
based five-star hotels that operate
under the brand name Radisson Blu to
Prudent Asset Reconstruction
Company, said people aware of the
development.
HDFC
Prudent ARC's binding offer of ₹311 crore has triggered a Swiss challenge
auction for the hotel properties with total loans of ₹507 crore. Prudent's offer
equates to a recovery of 61% for the housing finance company.
HDFC has invited counteroffers from other asset reconstruction companies
(ARCs) by June 26, a notice issued by the housing finance company stated.
The counteroffer from other ARCs should be at least 5% higher than the
anchor bid of ₹311 crore, which equates to ₹327 crore.
As an anchor bidder, Prudent ARC will have the first right to match the
counteroffer.
HDFC and Prudent ARC did not respond to ET's request for comment until
Thursday press time.
The ₹507-crore portfolio comprises loans of KAD Housing and KAJ
Infrastructure, both promoted by DP Jain and his family. They operate two
five-star hotels in Ghaziabad - Radisson Blu Kaushambi and Radisson Blu
Hotel.
HDFC mandated Alvarez & Marsal to sell a ₹2,000 crore real estate portfolio,
people said.
In the last one year, HDFC has sold a part of its distressed real estate portfolio
to clean up its books.
https://economictimes.indiatimes.com/industry/banking/finance/hdfc-to-hold-auction-of-two-hotels-after-prudent-arc-makes-binding-offer/printarticl… 1/3
6/24/23, 4:38 PM HDFC to hold auction of two hotels after Prudent ARC makes binding offer - The Economic Times
HDFC sold a ₹577 crore portfolio comprising four loan accounts to Assets Care
and Reconstruction Enterprise (ACRE), an ARC backed by Ares SSG Capital, as
first reported by ET on June 16, 2022.
The portfolio comprised loans of Siti Networks, MEP Infrastructure
Developers, Hotel Horizon and Sterling Urban Development.
HDFC sold another distressed portfolio with outstanding loans of ₹1,180 crore
to ACRE for ₹602 crore in early October last year, as first reported by ET. It
included loans to Vatika Group and Nirmal Lifestyle.
The sale of distressed loan portfolios is a prelude to the merger of the housing
finance company with its subsidiary HDFC Bank.
On April 4, 2022, HDFC and HDFC Bank announced the merger of the two
entities. As per the swap ratio, each shareholder of HDFC will receive 42
shares of HDFC Bank for every 25 shares of HDFC. The merger between the
two is likely to conclude by July this year, the top management of HDFC Bank
announced in mid-April.
HDFC Bank announced a consolidated net profit of ₹46,149 crore, while HDFC
declared a consolidated net profit of ₹27,700 crore for the fiscal year 2022-23.
RATE THIS STORY
https://economictimes.indiatimes.com/industry/banking/finance/hdfc-to-hold-auction-of-two-hotels-after-prudent-arc-makes-binding-offer/printarticl… 2/3
6/24/23, 4:38 PM HDFC to hold auction of two hotels after Prudent ARC makes binding offer - The Economic Times
https://economictimes.indiatimes.com/industry/banking/finance/hdfc-to-hold-auction-of-two-hotels-after-prudent-arc-makes-binding-offer/printarticl… 3/3
