Brookfield Leads Race To Acquire Il&Fs HQ
Brookfield Asset Management has taken the lead in acquiring IL&FS Group's iconic 4,500,000 square-foot headquarters at the Bandra Kurla Complex in Mumbai. While several other firms, including private equity firms and real estate firms, expressed interest, none of them matched Brookfield's offer. The IL & FS Board of Directors brought the group's headquarters into the spotlight as part of the settlement process to settle the debt of Rs 99,000 crore. Built-in 2005, the 11-story building was one of the first to spring up in the business district. The IL&FS Board of Directors sought to earn Rs 1,000 crore from the sale of the property. However, a source said that Brookfield's offer was slightly lower. While the target price is in line with current values of office space in the vicinity, the private equity firm says the property is nearly 17 years old and will require further investment to modernize and repair. In addition, IL&FS has stated that they will continue to occupy a few floors for the time being as tenants. Contacted, IL&FS declined to comment on the transaction. Last year, the Canadian alternative investment company made headlines with a $2 billion real estate deal to acquire 1.2 square meters of office space from RMZ Corp. The company then raised Rs 3,800 crore through its real estate investment trust. Last year, Yes Bank acquired the former 6.95 lakh square foot headquarters of Reliance Group from Anil Ambani for Rs 1,200. However, none of the funds changed hands because the purchase was adjusted against a debt owed by the group company. Earlier, another private equity firm, Blackstone and Godrej Properties had expressed an interest in the office building. While the IL&FS building has only 11 floors, BKC's next GBlock real estate projects have more floors, as the relaxation of standards allows a higher floor area index for office use IT.
Tags : Realty Spotlight Brookfield BKC Private Equity IL&FS ASSET MANAGEMENT Bandra Kurla Complex RMZ Corp tenants