Friday, September 14, 2018

Post tepid response in February, Air India land up for grabs again

New Delhi: Flag carrier Air India, which is currently under a debt of around Rs 55,000 crore, is looking to auction off several of its residential properties and land holdings across the country expecting to raise at least Rs 550 crore. These include 14 residential apartments owned by the airline in the high-end Pali Hill area of Mumbai, estimated to be worth Rs 200 crore at reserve price. Air India had put 45 properties worth Rs 365 crore under the hammer back in February but could only raise Rs 30-35 crore from the sale, as per a senior airline official.
“Air India has targeted raising Rs 500 crore from monetising real estate assets by March 2019. The previous sale was largely unsuccessful because bidders found the reserve prices to be high. The unsold properties have been included in this round of auction,” the official said on condition of anonymity, adding that the proceeds will be used to pare the airline’s debt. The cash-strapped Air India earlier this month received an equity infusion of Rs 980 crore from the government, and is in process of raising debt of Rs 500 crore from domestic banks.
The properties put up for auction includes the airline’s apartments in localities such as Bandra, Khar, Colaba, Cuffe Parade, Mahim and Malad in Mumbai; Bengaluru’s Indiranagar; Navrangpura and Memnagar in Ahmedabad, and several other apartments and land parcels in Kolkata, Pune, Goa, Gwalior, Bhuj, Thiruvananthapuram and Nashik. Air India said in its tender notice issued on Thursday that the auction will be conducted by MSTC and a pre-bid will have to made along with an earnest money deposit ahead of the e-auction.
14/09/18 Pranav Mukul/Indian Express