Brookfield Asset Management is buying two floors from Jet Airways in an office complex at Bandra Kurla Complex in Mumbai for Rs Rs 490 crore.

The Canada-based investment fund, which owns 25 million square feet commercial space in the country, was the sole bidder at an auction held on Friday, sources said. Brookfield will pay around Rs 29,000 per square feet for around 170,000 square feet of office space in Jet Airways Godrej building.

According to real estate experts, the price quoted by Brookfield (which was also the reserve price for auction) is fair value given the current market conditions. Brookfield declined to comment on the matter.

Ashok Kumar, managing director at Gennex Partners, a commercial real estate services firm, said, "The property would have fetched 10 per cent more if markets were normal. The bid of Rs 29000 per square feet is a fair price given the current market conditions. It is great that deals are happening in the current market." Last year, private equity firm Blackstone had paid Rs 40,000 per sq feet for a 650,000 square feet space in Bandra Kurla Complex.

The two floors have been mortgaged to HDFC and proceeds from the sale would be used to clear the grounded airline's debt. Earlier this month, the National Company Law Tribunal allowed the sale of the property. Around Rs 360 crore from sale will be paid to HDFC against its claim of Rs 424 crore. A portion from the proceeds is also to be used to settle the pending aircraft loan of US Exim Bank.

Jet Airways shut operations last April and is under insolvency process since last June. The airline's resolution professional, Ashish Chhawchharia, has shortlisted four suitors for resolution and due diligence is on.

"Typically airline debt is not always backed by tangible assets and hence recovery from sale is not significant. For lenders it is a Hobson's choice. However, resolution looks to be a better preposition given Jet Airways' brand recall and attractive cost base in current situation," said Rajesh Prasad, chief strategy officer of Jet Airways.