Canadian investment firm Brookfield Asset Management Inc has bought office space across two floors from grounded airline Jet Airways (India) Ltd in Bandra Kurla Complex (BKC) for Rs 490 crore ($65 million).
The investment firm, represented through its affiliate Vrihis Properties Pvt. Ltd, has bought 3rd and 4th floors in office building - Jet Airways Godrej BKC, the airline said in a stock-exchange filing.
The resolution professional managing the insolvency proceedings of Jet Airways had issued a public notice dated 13 June for the sale of two floors (3rd and 4th) of the company’s building known as “Jet Airways Godrej BKC" through a public auction.
The deal got concluded pursuant to the e-public auction held on June 26, 2020.
“Vrihis Properties Pvt. Ld has emerged as a 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 crores,” the statement said.
The proceeds from the sale will be utilised as per the directions of the National Company Law Tribunal (NCLT).
“The sale and purchase is contingent upon transaction documents proposed to be executed between the company and the bidder, the statement further said.
“Importantly, the proposed transfer of the immovable property by the company is contingent on the bidder obtaining the consent of the Mumbai Metropolitan Region Development Authority for transfer of the immovable property,” it added.
Bidders who were in the race to acquire the asset included UK’s Kalrock Capital Partners along with Dubai-based Murari Lal Jalan, and Abu Dhabi-based Imperial Capital Investments Llc along with Haryana based Flight Simulation Technique Centre Pvt. Ltd.
Mumbai-based Big Charter Pvt. Ltd, Canada-based entrepreneur Sivakumar Rasiah, and Kolkata’s Alpha Airways were also in the race.
Brookfield is an active and aggressive investor in India’s real estate market. It has investments of over $2.5 billion in Indian and manages one of the active portfolios of rent yielding assets in the country.
In India, its real estate portfolio counts assets such as Unitech Corporate Parks (six assets), Hiranandani Group’s Powai assets, Essar Equinox Business Park, Waterstone hotel and office asset and another commercial development in Pune.
The deal would mark addition in the rent yielding assets of Brookfield. The firm has been adding to its portfolio and is likely to REIT out the portfolio in due course of time.
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