Saturday, January 13, 2018

Kingfisher House to be auctioned for sixth time

Mumbai: Kingfisher House, the erstwhile headquarters of now-defunct Kingfisher Airlines' (KAL), has been put on the block for the sixth time by the Debts Recovery Tribunal (DRT), Bengaluru.
The reserve price is Rs 82 crore, which is over 45% lower than the asking price in the first auction.
The tribunal has said that the sale will take place on February 13, 2017 through an e-auction. The sale follows a recovery certificate being issued by the tribunal for recovery of Rs 6,203 crore along with costs and interest at the rate of 11.5% from June 2013.
The fifth auction in May last year had failed with no one making a bid for the property. The earlier reserve price was Rs 92 crore. According to real-estate brokers, although the property is at a prime location — near Chhatrapati Shivaji International Airport-Terminal 1, there are no takers as the original reserve price was way out of line from the prevailing market price.
Although lenders have valued the property at Rs 150 crore, real estate experts say that the property has limited upside because of height restrictions due to its proximity to the airport. The property presently consists of four levels — basement, lower ground, ground and upper floor.
Incidentally, Mallya's famed Kingfisher Villa in Candolim, Goa, was sold through a negotiated deal to actor Sachiin Joshi for Rs 73 crore after failure of multiple auctions. Lenders are playing it safe through a graded reduction in the reserve price through multiple auctions.
13/01/18 Times of India