Monday, January 27, 2020

Air India hopes to land Rs 1,500 crore from Navi Mumbai Plot

Air India is expected to earn Rs 1,500 crore from the sale of a land parcel in the Nerul area of Navi Mumbai. However, a portion is currently occupied by some retired employees. With the process of privatisation underway, the airline has put the property on sale.

The City and Industrial Development Corporation of Maharashtra is helping the national carrier get a good deal for 100,000 square metre property. “Of the total area, 10% can be developed for commercial activities while rest has to be residential.

With the airport coming and lot of development in the region, we expect the land to fetch a good value,” said an Air India official. However, the airline will first have to deal with about 500 occupants of a residential tower on the property. They had been allotted flats as Air India employees.

“We are sceptical of figures they are expecting. The land rates in Nerul should be less than Rs 5,000 per sq.ft, which makes the Rs 1,500 crore target unlikely. A more conservative figure should be expected given that the real estate sector is already reeling with excess inventory,” said Rahul Grover, CEO of Mumbai-based Sai Estate Consultants.
26/01/20 Faizan Haidar/Economic Times
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