New Delhi: Air India could slash by as much as a quarter the base price of real estate assets including plots, apartments and a commercial tower it plans to auction, officials at the staterun airline said.
Two years ago, the national carrier had put on the block as many as 111 properties with a cumulative price tag of Rs 9,500 crore, hoping to monetise assets to reduce its mounting debt. It has so far managed to sell only 32 of those, raising about Rs 1,000 crore, the officials said.
In fact, several properties have been put on sale multiple times since, but failed to attract bidders even at the base price. For instance, it recently cut the price of a 2,000-square-metre plot in Mumbai’s Pali Hill, after trying to auction it six times for Rs 200 crore. The base price of a bungalow in Nairobi will also be reduced as it could not fetch any buyer so far.
“Because of the slowdown, we have noticed that even prime properties are not finding buyers at the rate we are bidding,” said an Air India official. “The Mumbai’s property is at a prime location, and despite reducing the price by 25%, it could not find a buyer. We will have to see what to do next … a property in Amritsar was sold at the sixth attempt.”
It has found success overseas though, with the sale of properties in Tokyo, Hong Kong, London and Mauritius. An office space in London was sold at Rs 45 crore, while flats in Tokyo and Hong Kong were sold to India’s Ministry of External Affairs. A group of ministers is scheduled to meet on Thursday to discuss the disinvestment.
19/09/19 Faizan Haidar/Economic Times
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Two years ago, the national carrier had put on the block as many as 111 properties with a cumulative price tag of Rs 9,500 crore, hoping to monetise assets to reduce its mounting debt. It has so far managed to sell only 32 of those, raising about Rs 1,000 crore, the officials said.
In fact, several properties have been put on sale multiple times since, but failed to attract bidders even at the base price. For instance, it recently cut the price of a 2,000-square-metre plot in Mumbai’s Pali Hill, after trying to auction it six times for Rs 200 crore. The base price of a bungalow in Nairobi will also be reduced as it could not fetch any buyer so far.
“Because of the slowdown, we have noticed that even prime properties are not finding buyers at the rate we are bidding,” said an Air India official. “The Mumbai’s property is at a prime location, and despite reducing the price by 25%, it could not find a buyer. We will have to see what to do next … a property in Amritsar was sold at the sixth attempt.”
It has found success overseas though, with the sale of properties in Tokyo, Hong Kong, London and Mauritius. An office space in London was sold at Rs 45 crore, while flats in Tokyo and Hong Kong were sold to India’s Ministry of External Affairs. A group of ministers is scheduled to meet on Thursday to discuss the disinvestment.
19/09/19 Faizan Haidar/Economic Times
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