MIAL puts 200 acres on the block

Mumbai: Mumbai International Airport (MIAL), a joint venture between Hyderabad-based GVK group-led consortium and Airports Authority of India (AAI), has decided to sell around 200 acres in the western suburbs of the city.
A person working with the GVK Group said the company has appointed a hospitality consultant to chalk out a blueprint of the sale. The consultant will guide the company on timing of the sale, target price and amount of land to be sold to hospitality companies, among others. The Santa Cruz area in the western suburb of the metropolis, where the land is located, has several premium hotels, some of them may be interested in the property.
The broad contours of the idea suggest that MIAL would sell the land in trenches. The first trench of 65-acre will be put on the block after three months.
The valuation of the land is expected to be at least Rs 10,000 crore, although the company targets more. The GVK official said: “Our price expectations are quite high from the prime property. Current market price should not be used as a benchmark, as we are not going to sell the entire property at one go. We expect to earn more than the ruling market rates.”
He said the plan to sell land in three parts was aimed at earning better valuations. When contacted, the GVK spokesperson said: “We are in the process of finalising the process of selling the land. We have appointed a hospitality consultant and cannot share any further details on this.”
17/06/09 Sachin Dave & Lijee Philip/Economic Times

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Categories: Airports Jun 2009