A Jet Airways-owned office floor in Mumbai’s Godrej BKC tower is set for auction on June 2 with a reserve price of ₹335.24 crore. Brookfield, which owns two other floors in the building, holds first refusal rights. The sale follows an NCLT order lifting a previous property seal.
A prominent commercial property formerly part of Jet Airways’ assets is going up for auction on June 2, 2023, as part of the ongoing liquidation proceedings under the IBC, 2016. The liquidator responsible for the case has put an entire office floor in the prestigious Bandra Kurla Complex (BKC) of Mumbai on auction with a reserve price of ₹335.24 crores.
The second-floor office property at Godrej BKC comprises over 83,000 square feet of space and has 70 dedicated car parking slots. Prospective bidders will need to pay an earnest deposit amounting to ₹32.5 crores to participate. Furthermore, the auction terms insist that the asset be relinquished on a ‘where is, as is’ basis. The winning bidder shall cover all outstanding dues related to taxes, transfer fees, dues, and expenses associated with the change of ownership.
This isn’t the first Jet Airways asset listed for sale in the building. In 2020, Brookfield Asset Management bought the airline’s third and fourth floors within the same tower for ₹490 Crores, which was approximately ₹28,900 per square foot; around 25% lower than the market rate then. That deal also included 138 parking slots and was deemed reasonable by BKC experts, considering the region’s available economic and premium office space.
Brookfield remains involved this time as well. Under the right of first refusal (ROFR) clause as part of the deal during the jet transaction, the company can match the highest offer made for the second floor if they want to upsize within the tower. The Municipal Corporation of Greater Mumbai had sealed the floor, which is presently vacant due to outstanding payments. However, the National Company Law Tribunal (NCLT) ordered the property’s unsealing and a cease on recovery actions on April 28.
The Godrej BKC building, developed in 2011 as a joint venture between Godrej Properties and Jet Airways, is one of BKC’s landmark commercial towers. Jet Airways initially bought the plot from the Mumbai Metropolitan Region Development Authority in 2008 for ₹826 crore before partnering with Godrej for development.
While neither Brookfield nor the appointed liquidator responded to queries at press time, real estate observers will be watching the June auction closely. The outcome could indicate the appetite for premium commercial real estate in one of Mumbai’s most sought-after business districts, especially as the market rebounds from pandemic-era disruptions.
