Godrej Properties has entered into an agreement with Jet Airways to develop the airline's 2.5-acre property at the Bandra-Kurla Complex here.

The deal was doing the rounds for over a year. Jet had bought the plot for Rs 399 crore in 2006.

Debt obligation

According to the agreement, Godrej Properties will take on the Rs 360-crore debt obligation Jet Airways has on the property and also pay the airline Rs 135 crore as compensation for expenses incurred so far.

Further, Godrej has agreed to sell 161,460 sqft of carpet area to Jet Airways at development cost. This space is for housing the headquarters of Jet Airways.

For the balance of developed area, Godrej Properties and Jet will spilt the profit equally.

A MILLION SQ FT

Godrej Properties proposes to develop about one million square feet of office space in three years. As the current rates at BKC hover around Rs 25,000-30,000 a sqft, the development could rake in Rs 1,500-1,700 crore, said real estate consultants.

Mr Pirojsha Godrej, Executive Director, Godrej Properties, said, “We are happy to have partnered with Jet Airways and look forward to creating a landmark at BKC. We will pay special attention to the design, quality and functionality of the building to ensure that it enhances the vibrant environment of BKC, which is already established as India's most desirable business address.”

Mr Nikos Kardassis, Chief Executive Officer, Jet Airways, said “We have been looking forward for a right partner to develop this property in the leading business district of Mumbai. The development of our BKC plot is a strategic decision. We are confident that their expertise will help us execute our vision to create a commercial workspace of global standards – a distinct addition to Mumbai's cityscape.”

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