Friday, December 07, 2018

Air India sells 26 properties for Rs 162 crore, bids for Mumbai building likely this month

Debt-laden Air India has generated around Rs 162 crore by selling 26 units in the latest land monetisation drive, said sources familiar with the matter.

The airline had invited bids for over 85 real estate items including residential, commercial land and flats across 16 cities such as Pune, Chennai, Lonavala, Mumbai among others. The advertisement was floated on November 13 and the date for bid closure was December 4.

Air India management has been trying to pare its debt burden by monetising non-core real estate properties.

The national carrier is also likely to invite bids this month for the iconic Air India building at Nariman Point in Mumbai, sources told CNBC-TV18, requesting anonymity.

The property, which currently fetches an annual rental income of around Rs 110 crore for Air India, was earlier being eyed by Jawaharlal Nehru Port Trust but the discussions did not materialise. In fact, as per senior government officials, the plan to sell was put on hold and discussions on renting out some more floors of the building were under consideration.

However, now with a lot of parties interested in buying the building, Air India has roped in Cushman and Wakefield as its realty consultant and bids are expected to be invited this month.
07/12/18 CNBC TV18