Mumbai: Air India's plan to lease vacant floors in its iconic Nariman Point head quarters is facing rough weather but Ajit Singh is confident that national carrier will be able to carry out its plans to monetise the real estate.
As a part of its turn around plan Air India plans to raise Rs 5000 crore through sale or lease of its properties in Mumbai and Delhi.
Besides these cities Air India has properties and offices in cities in India and abroad to which it does not even have flights. The real estate monetisation plans includes leasing 1.6 lakh sq feet of floor space comprising eleven floors of the 23 storey Air India building. However, Air India has been forced to extend bid date to November 29 due to luke warm response from corporates.
Air India occupies six floors and three of these have been leased out. The rest are largely unused. Now Air India plans to shifts its headquarters to New Delhi and let out its office space to private parties.
Singh admitted the real estate monetisation was being impacted due to sectoral problems. "Real estate is going through difficult time. It (Air India building) is in old area and lot of companies are moving to newer areas,'' Singh stated. He, however, expressed confidence that the lease proposal will find takers. "Air India has properties all over and has appointed a real estate consultant,'' he said. Singh expressed hope that Air India will be able to carry out its plans to raise Rs 5000 crore from real estate despite tough conditions.
24/11/12 Aneesh Phadnis & Raghavendra Kamath/Business Standard
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As a part of its turn around plan Air India plans to raise Rs 5000 crore through sale or lease of its properties in Mumbai and Delhi.
Besides these cities Air India has properties and offices in cities in India and abroad to which it does not even have flights. The real estate monetisation plans includes leasing 1.6 lakh sq feet of floor space comprising eleven floors of the 23 storey Air India building. However, Air India has been forced to extend bid date to November 29 due to luke warm response from corporates.
Air India occupies six floors and three of these have been leased out. The rest are largely unused. Now Air India plans to shifts its headquarters to New Delhi and let out its office space to private parties.
Singh admitted the real estate monetisation was being impacted due to sectoral problems. "Real estate is going through difficult time. It (Air India building) is in old area and lot of companies are moving to newer areas,'' Singh stated. He, however, expressed confidence that the lease proposal will find takers. "Air India has properties all over and has appointed a real estate consultant,'' he said. Singh expressed hope that Air India will be able to carry out its plans to raise Rs 5000 crore from real estate despite tough conditions.
24/11/12 Aneesh Phadnis & Raghavendra Kamath/Business Standard
