MUMBAI : Blackstone-backed K Raheja Corp has pipped South Korea’s Mirae Asset Global Investment in race to acquire Citibank India’s former headquarter at Mumbai Kurla Complex (BKC) for 395 crore, said two people aware of the development.

“Citibank has finalised K Raheja Corp as the buyer for the 8-storey building and both parties have initiated documentation to conclude the sale," said the first person mentioned above.

Mint reported on 2 July that Mumbai-based K Raheja Corp was in the race to buy the property even as Mirae Asset has emerged as the top bidder. The Seoul-headquartered firm which is also part of Mirae Asset Financial Group, has offered to buyout the asset for 413 crore.

Spokespersons of K Raheja Corp and Citibank India have declined to comment.

Spread across 130,000 sqft, the building is popularly known as Citi Centre and has remained as Citibank’s headquarter until 2012. The bank later shifted to the First International Finance Centre in the area.

Backed by New York headquartered private equity firm Blackstone K Raheja Corp has been in the race to buyout several commercial assets in major cities in the country in the last few years. The Mumbai-based firm currently owns several business parks under the brands Mindspace and Commerzone spanning over 20 million sqft of office space Mumbai and Hyderabad.

Several large developers and private equity investors have over the last few months shown interest in the marquee property at Mumbai’s central business district. Around 18 bidders including global funds and large real estate developers were vying for the property.

International property consulting firms JLL India and CBRE were running the mandate to sell the property. A spokesperson at JLL declined to comment, while CBRE did not respond to queries till the time of going to press.

In the last five years, value of commercial office space at BKC, Mumbai’s upcoming financial hub, has jumped more than 30% as a host of private equity firms and real estate companies chase to buyout a handful of fully-leased marquee office assets, according to local brokers.

A recent transaction at Godrej BKC, a 12-storey premium commercial building, saw office spaces being sold at around 37,000 per sq. ft. The building was developed by Godrej Properties Ltd in partnership with the now grounded Jet Airways (India) Ltd, which owned the prime land.

According to a 26 June report in the Times of India, Tokyo-based Sumitomo Corp has offered to pay 2,238 crore for a three-acre plot at BKC. At 745 crore per acre, this would make it one of the highest bids in recent times in India

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