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Bangalore: Goldman Sachs Group Inc. has invited bids for its under-construction property in Bangalore, where a Four Seasons hotel and private residences were planned.

Bids have to be submitted on Friday, said three people familiar with the development. The asking price for the property is around $100 million (about 600 crore).

Potential bidders include global funds Blackstone Group Lp and Xander Group Inc., developers Shriram Properties Pvt. Ltd, Nitesh Estates Ltd and RMZ Corp., and some US family offices.

Mape Advisory Group, recently appointed by Goldman as its adviser in the sale, is conducting the auction. The process of evaluating the bids and selecting the buyer may take about a month.

“The bids will have to be submitted by Friday evening. The timing for submission will be extended by a few more hours for US-based bidders due to the time difference," said one of the people mentioned above. All three declined to be named.

While a dozen funds and developers are interested in the property, 5-6 of them are expected to submit bids, this person said. The City View project, on 6.5 acres in Bangalore’s Yeshwantpur area, is a joint venture involving Goldman Sachs, the majority stakeholder, London-based project developer Westcourt and Bangalore-based Century Real Estate Holdings Pvt. Ltd, the land owner.

Construction at the site began in 2010. So far, around 600 crore has been invested in the property, in addition to 226 crore of long-term debt.

It isn’t clear why Goldman decided to sell the project. A spokesperson declined to respond to an email query on the sale.

Four entities confirmed they will submit bids for the Goldman property, but declined to be named. Blackstone and Xander declined to comment.

“We have been talking to the sellers for a while and will be bidding. Will wait and see who else bids besides us," said one developer. An executive at another development company confirmed participation in the auction but said the asking price was steep. “The asking price of $100 million is a bit too high for this property, and if it goes even higher, we may not be too keen on the deal," he said.

“There is good appetite for auctions of prime assets that come at a selling price of below 400 crore. Every city has 5-6 firms who have the liquidity and interest to buy such properties," said Ambar Maheshwari, managing director, corporate finance, Jones Lang LaSalle, or JLL, a property advisory.

Three factors determine how attractive a property or land is—location, asset type or usage of the land, and turnaround time to develop it, Maheshwari said. “Residential development is the current flavour, because it allows quick development and exit," he said. The Goldman property was planned as a mixed-use development including residences, shopping spaces and the Four Seasons hotel.

Earlier this year, JLL sold a 1.5-acre prime land parcel of Tata Communications Ltd in Chennai for 195 crore to VGN Developers Pvt. Ltd. It also has the mandate to sell more properties in other cities as well.

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