Thursday, June 18, 2020

Auction of Jet Airways BKC office piques buyers’ interest

Despite the impact of Covid-19 on the real estate sector, the approaching auction of the Jet Airways office located in the Godrej BKC building in Bandra Kurla Complex has been stirring interest. Several corporate companies, a leading private bank, a prominent real estate fund and a global asset management firm have made enquiries for possible bids, sources said.
 The third and fourth floor office mortgaged to HDFC Ltd is scheduled to be e-auctioned on June 26 as part of the corporate insolvency resolution process underway before the National Company Law Tribunal (NCLT). According to a public notice issued by the NCLT-appointed resolution professional Ashish Chhawchharia, the approximately 1,69,983 sq ft saleable area on the third and fourth floor of the building will be put on the auction block.
 The reserve price has been finalised at Rs 490 crore, and prospective bidder will have to pay an earnest money deposit of Rs 25 crore along with the bid document on or before June 24. An inspection of the property has been scheduled on Friday between 11am and 1pm. Karan Singh Sodi, regional managing director, JLL India said, “The Jet Airways floors should generate a good level of interest even in these uncertain times as the base price issued is way below the recently concluded sale transactions for Grade A assets in BKC. The reserve price is approximately 25 per cent below the average prevailing prices for Grade A assets”. The reserve price translates to a value of Rs 28,900 per sq ft, while the last big transaction in Godrej BKC was closed at Rs 36,000 per sq ft. Market sources said Grade A assets like Godrej BKC have been witnessing a healthy increase in rentals from 16 per cent to 21per cent in the last 12 months.
 18/06/20 Satish Nandagaonkar/Mumbai Mirror
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