Wednesday, August 23, 2017

SBI, govt departments interesting in buying Air India's Mumbai realty assets

Mumbai/New Delhi: Various government departments as well as State Bank of India (SBI) have shown interest in buying the properties to be auctioned by Air India in Mumbai, sources in the know said.

Advertisements, issued last week, got good response from prospective buyers, sources said. “Some government departments want to buy the apartments directly,” they added.

Air India is e-auctioning 41 apartments in Mumbai in the first phase. The carrier plans to auction its properties in other cities soon.

Though the airline has kept a reserve price of Rs 315 crore for these properties, it hopes to make around Rs 500 crore from the sale, said sources.

Out of the reserve price, one building in Mumbai’s Pali carries a reserve price of Rs 200 crore. “The Pali building has 12 apartments and unused development rights,” the source said.
“We have set a reserve price for the apartments. Looking at the market and the location of the apartments, we expect a revenue of around Rs 500 crore,” a senior Air India official said. “Ready apartments with clean titles should do well.”
23/08/17 Raghavendra Kamath & Arindam Majumder/Business Standard