Siemens puts 13 Mumbai apartments on the block

MUMBAI: German power equipment and transmission major Siemens has put 13 of its residential properties in Mumbai on the block. The properties, part of the company���s non-core assets, are spread across a total area of over 15,000 sq ft with an average price of around Rs 30,000 a sq ft. The properties are located in prime areas such as Altamount Road, Nepean Sea Road, Bandra, Dadar and Chembur. Siemens wants to take advantage of stability in realty prices.

The company plans to raise around Rs 45 crore, with a minimum selling price of an apartment starting from at least Rs 1 crore with an average price of around Rs 3 crore. A Siemens spokesperson said: ���As part of an ongoing strategy, Siemens regularly reviews its assets and (since) these apartments have not been occupied for quite some time, the company is planning to sell them. The properties will be sold through an auction route.���

The company has appointed Jones Lang LaSalle Meghraj (JLLM) as the property consultant for the deal. The company is also believed to be planning to put more such properties on the block soon. These residential properties would be put on block only after selling the current lot of 13 apartments.

Anuj Puri, chairman, JLLM, said: ���These are premium properties. Besides Siemens, there are many others also exploring the option of selling their non-core assets.��� Earlier, Hindustan Uniliver had also sold some of its residential properties.

Even banks such as Standard Chartered and HSBC are planning to put their non-core assets on the block. The selling of assets is not the result of a distress sale, but to unlock the valuation of the existing assets that are lying underutilised.

���Companies may either sell the property or rent them out since that is also an effective option,��� said an industry tracker. The recent stability in the property market has been a significant reason for companies to sell some of their real estate assets.