Bank of Baroda tops bids for Jet Airways’ Mumbai office property at Rs 370 crore: Report

The 19-storey Godrej BKC tower was developed in 2011 as part of a joint venture between Godrej Properties and Jet Airways.

Bank of Baroda has emerged as the highest bidder for Jet Airways' prime office space in Mumbai’s Bandra-Kurla Complex (BKC), according to a report by The Economic Times. The state-run lender has reportedly offered Rs 370 crore for the 83,000 sq ft property located in the Godrej BKC commercial tower.

The bidding process was conducted under the Insolvency and Bankruptcy Code (IBC), 2016. The office space was previously listed for auction by a government-appointed liquidator with a reserve price of Rs 335.24 crore.

According to ET, the liquidator is now expected to notify global investment firm Brookfield Asset Management, which holds the right of first refusal (ROFR) for the property, allowing it a 15-day window to match Bank of Baroda’s offer.

Brookfield is reportedly considering exercising its ROFR. The firm had earlier acquired two office floors in the same building in 2020 for Rs 490 crore during Jet Airways’ insolvency process. Those floors, spanning approximately 180,000 sq ft and including 138 parking spaces, are currently leased to high-profile tenants such as the World Bank and PayPal. Brookfield’s previous deal also granted it ROFR rights for the second-floor space currently under auction.

The vacant office floor, situated on the second level of the tower, was sealed by the Municipal Corporation of Greater Mumbai due to outstanding dues. However, the National Company Law Tribunal (NCLT), in an order dated April 28, directed the civic body to de-seal the property and halt all recovery efforts.

The property is being sold on an “as is where is” basis under the IBC, and the successful bidder will be responsible for all applicable taxes, dues, and transfer charges.

The 19-storey Godrej BKC tower was developed in 2011 as part of a joint venture between Godrej Properties and Jet Airways. The airline had originally acquired the land from the Mumbai Metropolitan Region Development Authority (MMRDA) in 2008 for Rs 826 crore.

As per Economic Times, email queries sent to the liquidator Satish Kumar Gupta and Bank of Baroda remained unanswered. Brookfield declined to comment on the development. Moneycontrol could not independently verify the report.