Brookfield Asset Management has offered to pay more than Rs 1,100 crore for IL&FS headquarters in Mumbai's Bandra Kurla Complex (BKC).
The Canadian investor made the highest offer for the 10-storied property of the debt-laden financier, which was one of the first structures to come up in BKC, reported The Economic Times.
The Uday Kotak-led IL&FS board had estimated that the property was worth around Rs 1,200 crore. The deal is done and documentation and processes will be concluded in the first quarter of the next financial year 2022-2023, according to the report.
The building is mortgaged with HDFC for loans outstanding worth Rs 400 crore. Sale proceeds will also be used to pay off those debts.
Also Read: IL&FS addresses Rs 52,000 crore debt, maintains aggregate resolution at Rs 61,000 crore
Apart from Brookfield, several other global and domestic institutional investors had also shown initial interest in the property.
IL&FS is monetising its assets with an objective to manage its debt obligations. The failure of the non-bank lender to meet repayment obligations in 2018 led to a liquidity squeeze that gripped the country's non-banking finance sector.
The government then replaced the IL&FS board, which has since been engaged in trying to resolve total debt worth over Rs 99,000 crore as of October 2018. The board estimates overall recovery to be around Rs 61,000 crore of the total debt, an upward revision from its earlier estimate of Rs 56,000 crore.
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