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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Brookfield sole bidder for Jet Airways’ office in BKC – ET RealEstate

MUMBAI: Global asset management firm, Brookfield Asset Management emerged as the sole bidder in the e-auction of two floors of office space belonging to Jet Airways in the Godrej BKC building at Bandra-Kurla Complex on Friday, offering the base price of Rs 490 crore, real estate industry sources said.

“Yes, Brookfield has made the sole bid at the base price,” said a source closely associated with the auction, refusing to give more details.

Brookfield Asset Management owns, develops and manages 282 office properties and 138 million sqft of commercial space globally.

The Jet Airways office on the third and fourth floors, measuring 1,69,843 sqft, of Godrej BKC went under the hammer after the National Company Law Tribunal gave its approval for auctioning immovable assets of the airline on June 11. The reserve price was fixed at Rs 490 crore.

Godrej BKC is developed by Godrej Property Ltd on Jet Airways land, and the two floors were mortgaged to HDFC.

Real estate sources told Mirror that a leading private bank and a real estate fund of a listed developer were the other contenders who had made enquiries regarding the property.

Mirror had on June 19 reported that the auction had piqued the interest of prominent corporate entities and the reserve price translated into a rate of Rs 28,900/sqft, which was 25 per cent lower than the last big market transaction at Bandra-Kurla Complex, which closed at the rate of Rs 36,500/sqft.

Brookfield Asset Management could not be contacted for a comment.

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