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The iconic 22-storeyed Air India tower along Marine Drive in Mumbai can fetch up to Rs 800 crore, if sold, or as much as Rs 80 crore a year as rent.
Mr Sanjay Dutt, Chief Executive Officer – Business, Jones Lang LaSalle, said the rental for the 2.2 lakh sq ft property, excluding maintenance and property tax, has been computed at the going rate of Rs 300 a sq ft.
This independent assessment by the property consultant comes at a time when the airline is attempting to monetise its commercial assets. Sources said realtors are eyeing the iconic tower and hoping to trigger a sale, which may not necessarily favour the debt-ridden airline.
Mr Dutt said he was puzzled at the airlines' “decision” not to rent out the Air India building as it is among the most valuable real estate assets in the financial capital of Mumbai.
Air India, which has an over Rs 40,000 crore debt, has yet to decide on utilising its commercial spaces to shore up finances.
A turnaround plan reviewed by consultancy firm Deloitte and accepted by the AI Board details monetising commercial assets to garner revenues of Rs 4,000 crore until 2014-15. The assets identified include the Marine Drive high-rise, land in Navi Mumbai, and the Airlines House and apartments in New Delhi.
Air India owns Collector leasehold rights to the Marine Drive building, with a 30-year lease renewable for another 30 years.
An Air India spokesperson said no such decision had been taken and “a turnaround plan, which includes monetising commercial assets, has been approved by the Board on March 15.”
On current occupancy, he said that but for a few floors occupied by TCS, the rest were being utilised by the carrier.
Sluggish Market
Hindustan Unilever, which moved to suburban Andheri, has not been able to get enough suitors for its erstwhile headquarters in South Mumbai.
The ‘Lever House' measuring 1.53 lakh sq ft is said to be worth over Rs 500 crore. Realtors said it could fetch Rs 4.5 crore monthly rent.
In March, the company advertised for sale/lease of the property and offered office space measuring 4,400 sq ft to 26,000 sq ft in the ground-plus-seven-floor superstructure. Mr Dutt said nothing has been leased out as yet and discussions were on.
Post slowdown, many corporates in South Mumbai preferred to move to suburbs such as Andheri and Navi Mumbai to reduce estate cost. The move also benefited employees, who earlier had to commute to South Mumbai from the suburbs.
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