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Air India puts 28 real estate assets under the hammer, aims to net at least Rs 270 crore

The e-bid will start on July 8, 2021, and close on July 9, 2021.

The e-auction comes as a precursor to the government’s proposed disinvestment of India's national air carrier expected to be completed this year.

The e-auction comes as a precursor to the government’s proposed disinvestment of India's national air carrier expected to be completed this year.

Debt-laden Air India has once again put up for sale as many as 28 real estate assets including some it could not sell in previous auctions by lowering the reserve price of some of the properties

As part of its snail-paced asset monetisation plan amid the disinvestment process of the debt-ridden flag carrier, Air India has announced the e-auction of multiple properties - residential, commercial and plots - located across major cities.

According to an advertisement published in the national dailies on June 18, the e-bid will start on July 8, 2021, and close on July 9, 2021.

The starting bid price of these units ranges from Rs 13.3 lakh to about Rs 150 crore and the airline is looking to raise a minimum of Rs 270 crore from the sale of all these properties, according to a tender document issued by the airline and seen by Moneycontrol

The current auctioning lot has several properties, which have been put on sale multiple times previously but failed to attract bidders even at the base price.

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However, unlike the past few attempts, Air India has lowered the reserve price of some of these properties, especially those in Tier 1 cities, to attract buyers, a senior Air India official said, requesting anonymity.

The reserve prices of properties have been cut by around 10 percent from the last attempt to sell these properties, the official said.

State-owned MSTC Ltd, which specialises in conducting e-auctions, will handle the online auction for Air India.

There are as many as 15 properties including five flats located in the Asian Games Village Complex in South Delhi, a residential plot in Mumbai spread across an area of 2006 sq m with 14 flats of built-up area of 2030 sq m in Pali Hill, Bandra.

The duplex units in Asiad Games Village are priced between Rs 4 crore to Rs 5 crore and Rs 9 crore to Rs 10 crore for independent bungalows and the plot in Bandra, Mumbai is priced around Rs 150 crore, sources told Moneycontrol.

There is also one 3BHK unit and two 2 BHK units in Sachin da Strains, Gasdar Scheme, Santacruz, Mumbai, priced between Rs 2 crore and Rs 4 crore.

In Bengaluru, it is e-auctioning a plot spread across an area of 5,934 sq m in Gangamuthanhalli Village, Devanahalli District and four 2BHK units in Uday Shankar Sarani, Golf Green, Kolkata.

The residential plot in Bengaluru is priced around Rs 4 crore, while the Kolkata flats are priced at around Rs 50 lakh.

In Aurangabad in Maharashtra, it has listed booking offices and staff quarters in Town Centre in Bajipura, Aurangabad, six units of CIDCO 2BHK flats in Swami Vivekanand Nagar, Nashik, and booking office in Civil Lines, Nagpur.

The properties in Aurangabad are priced between Rs 4 crore and Rs 5 crore and between Rs 20 crore and Rs 22 crore.

On offer in Gujarat are a residential plot (231 sq. m. approximately) in Ghanshyam Nagar and an Airlines House on Station Road in Bhuj.

A flat in Hoisala, Diana Complex, Kadri, Mangalore; a residential plot at NCC Nagar, Peroorkkada, Kadappanakunnu Village, Thiruvananthapuram are also part of the list. The plot in Thiruvananthapuram is priced at around Rs 4 to Rs 5 crore.

The e-auction comes as a precursor to the government’s proposed disinvestment of India's national air carrier expected to be completed this year.

A Mumbai-based real estate consultant said that it may be a good idea to buy these properties as both their values and mortgage rates are reasonable. An e-auction such as this is a win-win for both the party selling the property and those buying it as customers get a titled and a ready property which is priced at fair market value.

Those wanting to participate in the e-auction should remember that these are older properties and therefore their valuation is reasonable compared to new complexes coming up in the same areas where there may be loading involved. Also, there are no brokers and it is a direct transaction.

“While there may not be any fancy amenities, you will be getting what you are paying for. In short, prices are realistic compared to new properties in the same location,” he said, adding besides the price of the property, the buyer would have to pay the stamp duty and registration charges and he may also get a loan for residential properties.

On August 16, 2019, Air India Ltd had announced the auction of more than 60 real estate assets, including some it could not sell at its auction held in the month of April.

The properties on the block had included 14 apartments at Mumbai’s Pali Hill, individual apartments at Mahim, Colaba and Bandra, apart from houses and flats in Kolkata, Nashik, Bengaluru, Lonavla, Hyderabad, Gwalior, Delhi, Amritsar and Bhuj, among others.

The reserve price of the units in 2019 had ranged from Rs 15 lakh to about Rs 8 crore. In April 2019, the carrier had put up as many as 56 properties for sale.
Vandana Ramnani
first published: Jun 18, 2021 05:21 pm

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