Brookfield acquires the office ownership of Jet Airways in Mumbai through insolvency process

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In an important development among the current insolvency procedures of Jet Airways, Global Alternative Investment Major Brookfield Asset Management has acquired an extra office floor in commercial Torengodrej BKC in the Bandra-Kurla complex of Mumbai in Mumbai for RS 370.25 Crore.

The sale was carried out under the insolvency and bankruptcy code (IBC) and under the supervision of the National Company Law Tribunal (NCLT). Bank of Baroda had initially emerged as the highest bidder, but Brookfield has now exercised his right to the first refusal to match the bid and protect it actively.

With this purchase, the footprint of Brookfield in the 19 -storey premium commercial tower now includes approximately 250,000 m² over three contiguous floors, together with exclusive parking rights. The deal is also transferred Jet Airways‘Sitting in the board of the building to Brookfield, giving it a greater voice in operational and strategic matters about the property.

The transaction underlines the attractiveness of Prime BKC office space, despite the fact that it is actively sold on a ‘as is where’ is the basis. The floor, previously sealed by the municipal company of Greater Mumbai on unpaid rights, was dismissed in April after an NCLT directive. Sources from the industry said that various occupiers of end users had shown interest during the bid process and are expected to participate in leasing the space.

The rental percentages in BKC have risen sharply over the past three to four years by around 30% driven by limited new supply and persistent demand from multinational companies and financial institutions.

At Godrej BKC, the rents currently vary between RS 650 and RS 700 per square meter a meeting month on the basis of a carpet area, so that it is placed under the most expensive office locations in Mumbai.

Brookfield is not new in the building. In 2020, as part of the same insolvency procedures, it had acquired two floors in the building for RS 490 Crore. Those floors are fully rented to selection framework tenants, including the World Bank and PayPal, whereby a steady rental income is guaranteed.

ET’s e -Mailquery to Jet’s Liquidator Satish Kumar Gupta remained unanswered, while Brookfield refused to comment.

The newest acquisition is part of Brookfield’s broader strategy to expand its premium commercial real estate portfolio in Mumbai. Recently the Plot C-80 in BKC, an excellent site of two hectares with development potential of more than 3.6 Lakh square meters, which further strengthened the presence in the financial hub of the city.

Godrej BKC, jointly developed by Godrej property and Jet Airways, has been a popular business address since completion in 2011. The location, design quality and the tenant profile of the building held it first in the Mumbai office market, making it a strategic long-term long-term bet on the commercial growth of the city.

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