Samsara Properties Limited, an offshore wholly owned subsidiary of The Indian Hotels Company Limited, which owns the Taj Group of hotels, has announced the execution of a share sale deed for the divestment of 100 per cent of its shareholding in Blue Sydney, a Taj Hotel, in favour of Australia Hotels and Properties Limited. The transaction is valued at A$32 million (around Rs. 179 crore).

The buyer is the Hong Kong based Hind Hotels and Properties Group, which operates hotels and serviced apartments under the Ovolo brand. Subject to fulfilment of certain conditions, the transaction is scheduled to be completed by October 31, 2014.

The divestment has been undertaken as part of the Taj Group’s strategy to focus on markets which are core to the Group’s operations, and to create liquidity to fund the company’s ongoing expansion in such markets, the company said in a statement.

The Asia Pacific area, and particularly China, have been identified as targets for expansion by the Taj Group.

The statement added that the sale of Blue Sydney does not reflect any diminution of the group’s interest in the Australian market. Australia is the fifth largest source market for Taj Hotels Resorts and Palaces, and outbound Australian business in particular remains a high priority for the Group.

Blue Sydney was acquired by the Taj Group in 2006, and has operated with good occupancy rates, winning several accolades during the time.

Raymond Bickson, Managing Director and Chief Executive Officer of The Indian Hotels Company Limited said, “The hotel has a wonderful track record of high occupancy, a stellar list of industry awards and has set new Australian benchmarks for environmental practices. This decision is in line with our Group strategy to focus on key markets for now.”