Brookfield Asset Management is leading the race to takeover IL&FS group's 4.5-lakh sqft headquarters in Mumbai's Bandra Kurla Complex.

While a few others, comprising private equity companies and real estate firms, had displayed interest, none of them matched the proposal by Brookfield. IL&FS board has placed the group's corporate headquarters on the block as part of the resolution process to manage Rs 99,000 crore of debt.

The 11-storey building, developed in 2005, was one of the earliest to come up in the business district. The IL&FS board has been asking to realise Rs 1,000 crore from the property sale. But, Brookfield's proposal is a bit lower. While the target cost is in line with the present cost of office premises in the district, the private equity company has said that the property is about 17-year-old and would procure additional investment for modernisation and repairs. Additionally, IL&FS has said that it will continue to use a few floors as a tenant for the time being.

The Canadian alternative investment firm made headlines in the past year with its $2-billion real estate deal to procure 1.2 crore sqft of office space from RMZ Corp. The firm raised Rs 3,800 crore via its real estate investment trust. Last year, Yes Bank had procured the 6.95-lakh sqft erstwhile headquarters of Anil Ambani's Reliance Group worth Rs 1,200 crore. But, no money changed hands as the acquisition was adjusted against a loan due from the group firm.

Previously, another private equity firm Blackstone and Godrej Properties had displayed interest in the office property. While IL&FS building is just 11 storey's subsequent real estate developments in the BKC's G-Block have many more floors as a relaxation in rules, have let higher floor space index for offices utilising IT.

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