Mumbai: Brookfield Asset Management has emerged as a defender to acquire the IL & FS headquarters 4.5-Lakh Sqft Group in the Kurla Mumbai bandra complex.
While some others, including private equity companies and real estate companies, have shown no interest that matches the bid by Brookfield.
The IL & FS board has placed the group company head office in the block as part of the process of resolution to overcome the RS 99,000 Debt Crore.
Built in 2005, the 11-storey building was one of the earliest to appear in the business district.
IL & FS boards have tried to realize RS 1,000 Crore from property sales.
However, the source said that Brookfield’s offer was slightly lower.
While the target price is in line with the current value of the office where the office in this district, private equity companies have said that the property is almost 17 years old and will require additional investment for modernization and repairs.
Also, IL & FS have said that it will continue to occupy several floors for now as tenants.
When contacted, Il & FS refused to comment on the transaction.
The Canadian alternative investment company made the headlines last year with a $ 2 billion real estate agreement to obtain 1.2 crore sqft office space from RMZ Corp.
The company further raised Rs 3,800 crores through real estate investment trust.
Last year, the bank had acquired the headquarters of 6.95-lakh Sqft Erstan Group Reliance Anil Ambani for 1,200 crore Rs.
However, there is no money that changes hands because the purchase is adjusted to a maturing loan from the group company.
Previously, other private equity companies Blackstone and Godrej had shown interest in office property.
While the IL & FS building is only around 11 subsequent real estate developments in BKC blocks having more floors as relaxation in norms have allowed a higher floor space index to use it.