The Indian Hotels Company Ltd (IHCL), owners of the Taj group of hotels, is in discussions with the Delhi-based Claridges Group, to acquire Mumbai's Sea Rock hotel.

According to sources, the deal could be worth Rs 650-700 crore. IHCL is likely to arrange for funds through debt from its associate entities and internal accruals.

The deal is expected to be of great importance to IHCL as the Taj Land's End in Bandra is located across the road from Sea Rock. Post-deal, IHCL is believed to be working on an integrated complex at Taj Land's End, similar to the Taj Mahal Palace and Towers at the Gateway of India in Mumbai.

IHCL had in January 2009 had entered into a strategic arrangement with Claridges to provide technical and management expertise for restoration and operation of the hotel, when the redevelopment of the property was completed.

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IHCL to invest Rs.2,100 crore by 2011 (15-Aug-08)