Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  Jet Airways' BKC office space up for auction over loan default
BackBack

Jet Airways' BKC office space up for auction over loan default

The office space is part of Jet Airways Godrej BKC, a 12-storey premium commercial building, and will be auctioned on May 15
  • Jet Airways, which was until recently India’s second-largest airline, was shut down under the weight of high debt and a severe cash crunch
  • Jet Airways owes 11 banks, including nine Indian banks, about ₹11,261 crore. (Reuters)Premium
    Jet Airways owes 11 banks, including nine Indian banks, about 11,261 crore. (Reuters)

    Mumbai: Private sector lender HDFC Ltd has put on the block a prime office space owned by Jet Airways (India) Ltd at Mumbai's Bandra Kurla Complex (BKC) post failure by the grounded airline to repay a loan amount of around 415 crore.

    The office space that spans 52,775 sqft is part of Jet Airways Godrej BKC, a 12-storey premium commercial building, and will be auctioned on May 15 at a base price of 245 crore, said a public notice issued by HDFC Bank.

    "The borrower has failed to repay the amounts due to HDFC Ltd. Accordingly, HDFC Ltd has become entitled to enforce its mortgage over the immovable property," the notice said.

    Jet Airways, which was until recently India’s second-largest airline, was shut down under the weight of high debt and a severe cash crunch. The airline owes 11 banks, including nine Indian banks, about 11,261 crore. On Tuesday, Naresh Goyal, founder of the airline, offered to infuse 250 crore of his own funds an attempted to revive the carrier.

    Popularly known as Godrej BKC, the office building was developed by Godrej Properties Ltd in partnership with Jet Airways which owned the prime land. Jet Airways had got the land in 2008 for 826 crore through an auction by the Mumbai Metropolitan Region Development Authority (MMRDA). Two years, the airline entered into a pack to jointly develop the land.

    A much sought after office destination in Mumbai's upcoming financial district, the building made headline four years ago when pharmaceutical major Abbot India signed a 1479-crore deal, the biggest ever commercial office transaction, to set up its new corporate office within the complex.

    According to real estate consultants, the property would attract several investors given its strategic location and shortage for prime office space in Mumbai.

    "The reserve price is well positioned as it is approximately at a discount of 10-15% when compared to similar graded properties and, as a result, should attract investor interest," said Karan Singh Sodi, managing director( Mumbai), JLL India, a property consultant firm.


    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
    More Less
    Published: 08 May 2019, 09:31 AM IST
    Next Story footLogo
    Recommended For You
    Switch to the Mint app for fast and personalized news - Get App

    Chat with MintGenie