Brookfield leads race to acquire IL&FS group headquarters in Mumbai
Real Estate

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

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.

Image Source

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. Image Source

Next Story
Real Estate

Mahindra Lifespaces Bags Rs 12.5 billion Redevelopment in Mulund

Mahindra Lifespace Developers (MLDL), the real estate and infrastructure development arm of the Mahindra Group, has been appointed as the preferred developer for the redevelopment of a premium housing society in Mulund (West), Mumbai. The project will be developed across a 3.08-acre land parcel, with an estimated development value of approximately Rs 12.5 billion. Strategically located, the site enjoys proximity to major connectivity points—just 1.4 km from the upcoming Mumbai Metro Line 5 and 0.8 km from the Goregaon-Mulund Link Road. It also offers seamless access to the Eastern Expre..

Next Story
Infrastructure Urban

Snowman Adds Warehouses in Kolkata and Krishnapatnam

Snowman Logistics, India’s leading integrated temperature-controlled logistics company, has announced the commencement of operations at its two new state-of-the-art, owned cold storage facilities in Kolkata and Krishnapatnam. With these additions, the company’s total pallet capacity has reached 1,50,754, spanning 43 warehouses in 20 cities across the country. The newly operational Kolkata facility offers a storage capacity of 5,630 pallets, while the Krishnapatnam facility holds 3,927 pallets. These warehouses are equipped with advanced automation and infrastructure designed to enhanc..

Next Story
Resources

Noesis Enables IHCL Hotel Deal in Udupi–Manipal Corridor

NOESIS Capital Advisors, India’s leading hotel investment advisory firm, has successfully facilitated a landmark hospitality transaction in the Udupi–Manipal region of Karnataka. The deal involves the acquisition of a nearly completed, 130-key upscale hotel that will operate under one of the premium brands of IHCL, reinforcing NOESIS’ position as a preferred partner for strategic hospitality transactions across India. Strategically located on the Udupi–Manipal Highway, the 1.03-acre property will cater to business travellers, pilgrims and families visiting Manipal University. With..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?