Brookfield acquires IL&FS headquarters in Mumbai for Rs 1,080 cr
Real Estate

Brookfield acquires IL&FS headquarters in Mumbai for Rs 1,080 cr

Brookfield Asset Management, a global alternative investment major, successfully won the bid and is ready to acquire infrastructure lender Infrastructure Leasing & Financial Services Limited’s (IL&FS’) headquarters in Bandra-Kurla Complex (BKC) for more than Rs 1,080 crore.

The company told the media that the agreement is part of resolutions that the government-appointed board led by Uday Kotak has submitted with the dedicated bankruptcy court National Institution Law Tribunal (NCLT) or that have gained judicial authorisation.

IL&FS already got 10% of the total consideration, and the deal is likely to be completed in the next financial year (FY).

The property was one of the first establishments to emerge in BKC, which is now the de facto Central Business District of the country’s commercial capital.

The high-end office building with nearly 4.5 lakh sq ft of the leasable area includes key tenants such as IBM, IDFC, The Carlyle Group, Avendus, and Paypal.

The top three floors of the building are occupied by IL&FS Group companies and are likely to be vacated as the deal closes.

Brookfield has 47 million sq ft of office across six cities, and also owns The Leela Hotels and Palaces. Overall, Brookfield Asset Management has more than $20 billion of assets under management across infrastructure, renewables and private equity in India.

It already has a huge presence in BKC via its assets in the Godrej building, previously owned by Jet, and it also owns the Equinox Business Park, which they bought from Essar.

To manage debt commitments, IL&FS is monetising its assets. In September 2018, IL&FS' inability to meet repayment commitments flared a liquidity crunch in India's non-banking finance industry.

The government then overhauled the IL&FS board as part of a clean-up effort, and the company has since been working to address a total debt of over Rs 99,000 crore as of October 2018.

The new board and management of IL&FS stated that it addressed debt of Rs 55,000 crore to date, up from Rs 52,200 crore as of November 2021, as part of a periodic update on the ongoing IL&FS resolution.

As of October 2018, the group's overall resolution estimate was Rs 61,000 crore, representing 62% of the fund-based and non-fund-based debt of over Rs 99,000 crore.

So far, The debts that have been resolved Rs 55,000 crore account for more than 90% of the total expected settlement value. The remaining Rs 6,000 crore debt will be resolved in FY23.

The estimated overall resolution of 62% is double the average recovery of 31% under Insolvency and Bankruptcy Code (IBC). As of October 2018, 246 of the 347 organisations within the IL&FS Group had been resolved, leaving 101 entities to be addressed in the coming financial year.

Image Source

Also read: Brookfield leads race to acquire IL&FS group headquarters in Mumbai

Brookfield Asset Management, a global alternative investment major, successfully won the bid and is ready to acquire infrastructure lender Infrastructure Leasing & Financial Services Limited’s (IL&FS’) headquarters in Bandra-Kurla Complex (BKC) for more than Rs 1,080 crore. The company told the media that the agreement is part of resolutions that the government-appointed board led by Uday Kotak has submitted with the dedicated bankruptcy court National Institution Law Tribunal (NCLT) or that have gained judicial authorisation. IL&FS already got 10% of the total consideration, and the deal is likely to be completed in the next financial year (FY). The property was one of the first establishments to emerge in BKC, which is now the de facto Central Business District of the country’s commercial capital. The high-end office building with nearly 4.5 lakh sq ft of the leasable area includes key tenants such as IBM, IDFC, The Carlyle Group, Avendus, and Paypal. The top three floors of the building are occupied by IL&FS Group companies and are likely to be vacated as the deal closes. Brookfield has 47 million sq ft of office across six cities, and also owns The Leela Hotels and Palaces. Overall, Brookfield Asset Management has more than $20 billion of assets under management across infrastructure, renewables and private equity in India. It already has a huge presence in BKC via its assets in the Godrej building, previously owned by Jet, and it also owns the Equinox Business Park, which they bought from Essar. To manage debt commitments, IL&FS is monetising its assets. In September 2018, IL&FS' inability to meet repayment commitments flared a liquidity crunch in India's non-banking finance industry. The government then overhauled the IL&FS board as part of a clean-up effort, and the company has since been working to address a total debt of over Rs 99,000 crore as of October 2018. The new board and management of IL&FS stated that it addressed debt of Rs 55,000 crore to date, up from Rs 52,200 crore as of November 2021, as part of a periodic update on the ongoing IL&FS resolution. As of October 2018, the group's overall resolution estimate was Rs 61,000 crore, representing 62% of the fund-based and non-fund-based debt of over Rs 99,000 crore. So far, The debts that have been resolved Rs 55,000 crore account for more than 90% of the total expected settlement value. The remaining Rs 6,000 crore debt will be resolved in FY23. The estimated overall resolution of 62% is double the average recovery of 31% under Insolvency and Bankruptcy Code (IBC). As of October 2018, 246 of the 347 organisations within the IL&FS Group had been resolved, leaving 101 entities to be addressed in the coming financial year. Image Source Also read: Brookfield leads race to acquire IL&FS group headquarters in Mumbai

Next Story
Infrastructure Urban

India’s Rs 370 Bn Petrochemical Expansion to Shift Asian Supply

India’s planned investments worth over USD 37 billion (around Rs 3 lakh crore) in the petrochemical sector are poised to reshape Asia’s supply landscape, according to a new report by S&P Global Ratings.The report noted that India’s drive toward petrochemical self-sufficiency mirrors China’s earlier expansion and could intensify competition in the region. “India’s capacity additions will significantly alter trade flows and increase competition among Asian producers,” said Ker Liang Chan, credit analyst at S&P Global Ratings.S&P estimated that public sector enterprises ..

Next Story
Real Estate

Maharashtra Sets Up Authority to Boost Self-Redevelopment

The Maharashtra government has established a Self-Redevelopment Authority to support citizens in independently redeveloping old buildings, marking a major policy step for Mumbai and the surrounding metropolitan region.BJP legislator and Mumbai District Central Cooperative Bank president Pravin Darekar will head the new Authority, which will offer end-to-end guidance on project planning, funding, developer selection, and execution. The initiative follows the approval of the state’s New Housing Policy earlier this year, which allocated Rs 2,000 crore to promote self-redevelopment.Officials sai..

Next Story
Real Estate

MHADA Revises Premium and Payment Rules for Redevelopment

The Maharashtra Housing and Area Development Authority (MHADA) has revised its 2007 redevelopment policy to make the redevelopment of ageing housing societies in Mumbai financially sustainable.The key change involves recalibrating premium charges for commercial floor space in projects under Regulation 33(5) of DCPR 2034. The new formula links premium rates to land value, market rate, and proposed usage, replacing the earlier rule that charged 1.5 times the residential rate for commercial areas.Developers’ body CREDAI-MCHI had sought parity between residential and commercial rates to encourag..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?