Jet, Godrej will develop Bandra Kurla Complex plot

Mumbai: After years of being stuck with a white elephant, Jet Airways has decided to jointly develop its 2.5-acre plot at Bandra Kurla Complex (BKC) with Godrej Properties. DNA had reported about the probable deal on March 8.
The cash-strapped airline is learnt to have recently signed the term sheet (a document clarifying the initial terms of a possible deal between the buyer and seller) with the developer.
A formal agreement is yet to be signed as the two are still negotiating the compensation amount and the profit to be shared. As per information, Godrej has offered compensation of Rs450 crore and profit of up to 10%, but Jet is demanding Rs520 crore and 20% of the profit. Jet, however, has agreed to receive 2.5 lakh sq ft built-up space.
Jet had purchased the plot — located next to the Mumbai Cricket Club — in an auction by the Mumbai Metropolitan Region Development Authority (MMRDA) in 2006, but had been unable to develop it since.
Both sides, however, are yet to publicly confirm the deal. While Godrej Properties refused to comment, Prasun Sengupta, vice president (corporate administration) of Jet Airways, said the airline has not reached an understanding with Godrej.
19/05/10 Rajshri Mehta/Daily News & Analysis

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Categories: Jet Airways May 2010