Brookfield Asset Management is set to acquire Jet Airways office premises at Bandra Kurla Complex (BKC) in Mumbai.
The two floors of the Godrej Building were put up for auction by Housing Development Finance Corporation Limited (HDFC Ltd) over unpaid dues.
An auction was held on Friday, where multiple parties bid for the approximately 1,70,000 square feet of 3rd and 4th floors of the building Jet Airways Godrej BKC along with the right to use 138 car parking spaces. The Reserve Price for potential bidders was set at Rs 490 crore Earnest Money Deposit (EMD) Rs 25 crore before June 24.
According to two people privy to information, Brookfield is in the fray to buy the said property, however, whether it has been selected or not will be clarified only on Monday. “No documents have been signed yet, things need to be verified.”
While neither the Resolution Professional nor Brookfield commented on the same, another source said that “Brookfield is interested in this plot because it is consolidating its investments in business hubs of Mumbai.” So far, Brookfield has investments in Hiranandani Powai, Equinox, and Hotel Leela among others.
The said property was mortgaged by Jet Airways to HDFC Ltd against a loan. Eventually, in April 2019, the airline went belly up and wasn’t able to pay up to HDFC among other operational and financial creditors and was dragged to the NCLT.
Since Jet Airways was considered as a ‘going concern’ by the NCLT, all its other assets could not be sold. However, since HDFC Limited had a right over this property, the sale of this property was permitted.
As far as a resolution for Jet is concerned, four entities had signed a Non-disclosure Agreement (NDA) with Jet’s RP.
Four entities in the fray
Among the four parties is UK-based financial advisory firm Kalrock Capital, which has submitted an EoI with Murari Lal Jalan, a UAE-based entrepreneur.
Another shortlisted entity is a consortium comprising Haryana-based Flight Simulation Technique Centre Pvt Ltd (FSTCPL), Mumbai-based Big Charter Pvt Ltd (BCPL), and Abu Dhabi-based Imperial Capital Investments LLC (ICIL).
The third entity that’s been shortlisted is Canadian entrepreneur Sivakumar Rasiah.
Kolkata-based Alpha Airways has also been shortlisted, albeit provisionally, since its documents are incomplete.
Signing an NDA gives the potential bidders access to the data room, which houses information on the company’s assets, vendors, employees, and liabilities.