Praveen Jain, promoter and director, MVL, told DNA Money that land for the hotel project has been acquired and excavation work has started.
MUMBAI: New Delhi-based Magnum Ventures Ltd (MVL), which has embarked on Rs 150 crore expansion drive, is also diversifying into hospitality business with its first project coming up in the National Capital Region. MVL, engaged in trading and manufacturing of paper for over 25 years, expects to launch its first property in 2009.
Praveen Jain, promoter and director, MVL, told DNA Money that land for the hotel project has been acquired and excavation work has started. “The said land for the hotel project was with us on 90-year lease from the UP State Industrial Development Corporation. We have applied for transfer of lease rights and for necessary permissions from the authorities,” Jain said. The overall investment of Rs 102.63 crore will be financed through a mix of debt and equity.
The company, sources said, has two more sites ideal for hotel projects under its kitty, but the promoters have not yet decided on whether to develop more hotels. The sources didn’t rule out the possibilities at a later stage.
Magnum is also hitting the capital markets very soon with a public issue of over 176 lakh equity shares of Rs 10 each. A Draft Red Herring Prospectus has already being filed with Sebi.
The company is setting up a four-star deluxe hotel in Ghaziabad district, bordering Delhi. As the hotel is close to Akshardham Temple the promoters have decided to make it a 100% vegetarian hotel though it will sport a global brand.
Carlson Hotels already operates a 100% vegetarian hotel at Katra (entry point to Vaishno Devi Temple) under the same brand.
“Hence, we decided to go with them. We have entered into an MoU with Carlson Hotels for their Country Inns & Suites brand. Besides, franchising the brand name, the international hotel chain will also manage the property after it is completed in 2009,” said Jain.
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