BKC deal almost done, could fetch Jet Airways Rs450 crore

Mumbai: Stuck for four years with seemingly a white elephant costing Rs339 crore, Jet Airways is likely to jointly develop its 2.5-acre plot in Bandra Kurla Complex with Godrej Properties.
The cash-strapped Jet Airways had purchased the plot - located next to the Mumbai Cricket Club — in an auction conducted by the Mumbai Metropolitan Region Development Authority (MMRDA) in 2006, but has been unable to develop it since.
Now, taking advantage of a window of opportunity provided by the MMRDA rules, Jet is close to accepting an offer from Godrej Properties which could fetch it- a Rs450 crore compensation; 2.5 lakh sq ft built-up space; and 10% profit in the new development. The negotiations are on in full swing as the company intends to conclude the deal by the financial year ending 2009-2010-which means it has just 24 days to go. If the deal goes through, it will signal Godrej’s entry into its first commercial venture.
Godrej Properties refused to comment on the deal. Prasun Sengupta, vice president (corporate administration) of Jet Airways, said the airline had not reached any understanding with Godrej.
08/03/10 Rajshri Mehta/Daily News & Analysis

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Categories: Jet Airways Mar 2010