LOLC Leisure buys balance 40% stake in Tropical Villas for Rs. 165 m

LOLC Leisure Ltd. has purchased the balance 40% stake in Tropical Villas Ltd. from Hayleys Group for Rs. 165 million.

The acquisition makes Tropical Villas a 100% owned subsidiary of LOLC Leisure. In August it bought a 60% stake in the Beruwela resort having over 50 luxury villas for Rs. 310 million from Jetwing Group.

For the majority stake, LOLC Leisure paid Rs. 50 per share whilst for the Hayleys stake held via Carbotels Ltd., a price of Rs. 40 was paid. Unlisted Tropical Villas number of shares in issue is 10.3 million.

LOLC Leisure is a joint venture between LOLC owning 70% and Browns Investments Ltd. holding the balance 30% stake.

In May this year LOLC Group made its foray in to the leisure sector by acquiring Palm Garden, Riverina and Eden. These three properties along with Tropical Villas are currently undergoing an accelerated refurbishment.

The combined portfolio of Eden, Palm Garden, Riverina and Tropical Villas gave LOLC Leisure Group a strength of over 500 rooms in the southern coast.