C Sivasankaran, the co-promoter of telecom company S Tel, and Mumbai-based real estate developer Ackruti City are investing Rs 1,000 crore to develop a 5-star hotel on a 5.4-acre plot in Mumbai.
Sivasankaran, also known as Siva in corporate circles, bought around 48% (DLF’s stake) in a special purpose vehicle (SPV) floated by Ackruti and DLF in 2009 for Rs 310 crore.
He is well known for his investments in fields as varied as coffee chain to telecom. Ackruti holds 48% and around 4% stake is with minority stakeholders.
Confirming the development Hemant Shah, chairman, Ackruti City said, “We are awaiting some required government permissions on the project and expect to commence work within three months. The funds for the R1,000 crore investment will be raised through internal accruals and bank financing.”
An email query to Siva and V Srinivasan, group CEO and director on the board of Siva Group, remained unanswered.
The project is expected to get completed in four years and may be run by an international hotel operator. It will come up on the land that once belonged to Hindoostan Spinning and Weaving Mills which went bankrupt and was then bought by DLF and Ackruti in 2007. DLF exited the project in 2009.