Tata group company Indian Hotels, which owns the Taj chain, said it has shifted its investments in Elel Hotels into a special purpose vehicle SPV.

In June 2009, Indian Hotels Company Lid IHCL had acquired a controlling 85 per cent stake in Elel Hotels and Investments, the company that holds the sub-lease of the land on which MumbaiSea Rock Hotel was built, for around Rs 680 crore.

IHCL will continue to be involved in the design and development of the proposed convention centre and hotel on the site, the company a statement said. The hotel is being built in place of the old structure, which was damaged in the bomb blast that rocked Mumbai in early 1993.

IHCL has restructured its shareholding in Elel for strategic reasons and it has the option to take the asset back on its balance sheet in three years time, it said. The asset continues to be under the ownership of the Taj group and developed under the guidance of IHCL, it added.

The Tata group company continues to have in place an operating and management contract as also a technical services agreement with Elel for the developing the Sea Rock project. Indian Hotels has an option to re-purchase the shares of Elel at the end of 37-months, it said.