Reliance Nippon Life Insurance leases 40,000 sq ft at Adani Inspire in BKC – ET RealEstate

MUMBAI: Reliance Nippon Life Insurance (RNLI) has taken a 40,000 sq ft space on a five-year lease at an Adani Realty project in the BKC business district to house its corporate headquarters, officials said on Wednesday.

Rental details of the transaction, one of the largest in recent times, were not immediately available.

“RNLI has signed up to have 40,000 sq ft in Bandra Kurla Complex‘s (BKC) Adani Inspire for five years,” a source said.

When contacted, RNLI’s chief executive and managing director Ashish Vohra confirmed the development while officials at Adani Realty were not available for comment.

“Corporate office relocations are a matter of long term commitment and the recovered business sentiment regarding the value of life insurance product gives us the confidence to make this decision. BKC is a prominent and centrally-located business district,” Vohra told PTI.

This is the second big deal clinched by Adani Realty for the 8 lakh sq ft project in BKC, after Japanese lender MUFG took 30,000 sq ft in the commercial property on a ten-year lease. A slew of banks, finance companies and insurance players have their head offices in the BKC business district.

The city’s realty market had been impacted because of oversupply and high prices, which only aggravated because of the economic impact of the pandemic. However, policy measures like a halving of duties for a limited period and interest rates being at 15-year lows have led to some revival.

The pandemic and the ensuing shift to work from home models because of the lockdowns had resulted in concerns for the commercial realty market, as there is a view that demand for space may be hit as companies may not require space to house staff.

RNLI will be moving to the space from Reliance Centre in nearby Santacruz, whose possession has been taken over by Yes Bank for non-payment of loans.



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IL&FS eyes Rs 1,500 crore from sale of headquarters in Mumbai – ET RealEstate

Crisis-hit IL&FS will invite initial bids for selling its corporate headquarters in Mumbai’s Bandra-Kurla Complex (BKC) later this month, about two years after the debt-laden infrastructure lender went bust, two people with direct knowledge of the development told ET.

The company is looking to monetise the high-end office property by the end of this financial year and the deal is expected to fetch around Rs 1,500 crore.

While discussions about monetising the property in the heart of Mumbai’s new central business district have been on for some time, IL&FS has now started the process with a definitive timeline in place.

“This is an NCLT-monitored process; so a lot of approvals are needed at every stage. It could be very time consuming but they are hoping to attract bids by the end of next month,” said one of the persons cited above.

The iconic 10-storey property was one of the first structures to come up in BKC, which is the de facto Central Business District of the country’s commercial capital.

The office building with around 4.5 lakh sq ft of leasable area counts IBM, IDFC, The Carlyle Group, Avendus and Paypal among its list of key tenants.

Around 40% of the building is occupied by offices of IL&FS Group companies and these are expected to be vacated in the due course as the deal reaches closure.

The company has roped in international property consultant CBRE South Asia as the advisor for the proposed transaction.

Earlier this week, the company also put two 28-storey commercial towers in Gujarat’s Gift City on the block.

The government appointed board of IL&FS is monetising these assets with an objective to manage its debt obligations.

“IL&FS is in discussion with its advisors and will soon be commencing the public sale process for its BKC HQ – The IL&FS Financial Center (TIFC),” IL&FS spokesman Sharad Goel said in response to ET’s email query. “With regards to Gift City, the sale process for pre-leased office spaces in Gift 1 and 2 has been initiated this week and expression of interest is expected by October. Thereafter, the sale process for remaining office spaces in Gift will begin. The distribution of all sale proceeds will be done in accordance with the NCLAT-approved resolution framework,” Goel said.

CBRE South Asia declined to comment for the story.

The Uday Kotak-led IL&FS board told the media in a video conference last month that it plans to recover Rs 50,500 crore of loans, or about half of the Rs 1 lakh crore total dues, by March 2021.

In a presentation, the board said it plans to recover Rs 900 crore by the sale of real estate assets by March 2021 and a further Rs 1,200 crore through more such sales beyond that date.

The headquarters building itself is mortgaged with home loan company HDFC for loans outstanding of Rs 400 crore and the sale proceeds will also be used to pay off those debts.

According to consultants, the commercial property is expected to attract good interest even during the ongoing pandemic given its prime location with BKC and the unabated interest of global funds in Indian commercial real estate.

Last year, Blackstone had purchased one of the three wings in ONE BKC at Rs 2,500 crore. Even during the current pandemic and lockdown, BKC has witnessed key commercial space transactions in the country. Recently, a Brookfield Asset Management company acquired the two-floor office space of Jet Airways in Godrej BKC for Rs 29,000 per sq ft.



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Mumbai: Lenders approve Rs 490 crore bid for Jet Airways’ BKC office – ET RealEstate

MUMBAI: Lenders have approved a Rs 490-crore bid by Vrihis Properties—a Brookfield company—for two floors of office space owned by the now bankrupt Jet Airways in Bandra-Kurla Complex.

As the sole bidder, the Canada-based private equity fund had bid at the reserve price and did not face competition, banking sources said.

At that price, the 1.7 lakh sq ft office space in Godrej BKC Building works out to Rs 29,000/sq ft.

Bankers said it was a good price given the market conditions and uncertainty over real estate prices. Its sale was delayed as although lenders had initiated bankruptcy proceedings, the floors were mortgaged to HDFC.

Jet bid Rs 826 crore for plot in 2008

Bankers are unlikely to get the sale’s proceeds. Bulk of funds will go to HDFC and a small amount will clear airline debts from US Exim Bank.
Mumbai: Lenders approve Rs 490 crore bid for Jet Airways' BKC officeJet Airways, which shut down last year, had bid Rs 826 crore during an MMRDA auction to develop the BKC plot in 2008. The cash-strapped airline later tied up with Godrej Properties in 2011 to jointly develop the plot. In 2015, drug-maker Abbott India bought 4.35 lakh sq ft space in the building for Rs 1,479 crore. HDFC said the property was mortgaged to it by Jet.

A report by real estate consultancy firm JLL said workplace design will see a shift over time due to Covid-19 with a mixed response from occupants. While telecommuting will become more mainstream, leading firms worldwide will embrace flexible workplace arrangements and take steps for social distancing and good hygiene, it said.



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Mumbai-based Vrihis Properties to take over Jet Airways’ BKC office – ET RealEstate

MUMBAI: City-based Vrihis Properties has emerged as a successful bidder for the Jet Airways‘ Bandra Kurla Complex-situated premises and the company has “decided” to accept its offer at Rs 490 crore, now-defunct Jet Airways said in a regulatory filing on Saturday.

The Jet Airways RP had issued a public notice on June 13 for the sale or transfer of third and fourth floors of the company’s building in “Jet Airways Godrej BKC“, by way of public auction at a reserve price of Rs 490 core.

“Pursuant to the e-public auction held on June 26, 2020, Vrihis Properties Private Limited has emerged as the successful bidder. The company has decided to accept the offer of the successful bidder for the transfer of the immovable property, at a price of Rs 490 crore.

“The proceeds from the sale will be utilised as per the directions of the NCLT, Delhi,” Jet Airways’ Resolution Professional said in the filing.

The successful bidder is not a part of the promoter group of the company or a group company and the proposed transaction will not qualify as a related-party transaction, the company said.

The insolvency professional had sought permission of the NCLT for the sale of the premises after a resolution was passed at the 10th committee of creditors (CoC) meeting held on April 24 with approval of 74.45 per cent votes.

The Principal Bench of the NCLT in its order on June 11 granted permission to the grounded airline to sell the premises for utilising the proceeds to settle Rs 360 crore dues of HDFC, as against the mortgage lender’s claim of Rs 424 crore.

The immovable property is not a core asset of the company and will not impact its prospects of reviving its aviation business, the RP said in the filing.

The cash-strapped airline, which was grounded in April 2019, owes more than Rs 8,000 crore to banks, with public sector lenders having significant exposure.

The National Company Law Tribunal (NCLT) Mumbai-bench had on June 20, 2019, admitted the insolvency petition filed by the lenders’ consortium led by State Bank of India against Jet Airways.



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