Godrej Properties to develop Jet Airways's BKC land in Mumbai

MUMBAI: Jet Airways and Godrej Properties today signed a deal to develop one of the two plots owned by the airline in the premium Bandra-Kurla Complex (BKC) central business district here.

The deal involves Godrej Properties, the real estate development arm of the diversified Godrej Group, making an upfront payment of Rs 135 crore to Jet to compensate it for the expenses it had already incurred, besides taking on the Rs 350-crore debt the airline has on the 2.5-acre at C-68, G-Block, BKC plot.

The Naresh Goyel-promoted airline has another 1.5-acre plot in the BKC, but it is locked in a legal dispute with the Sahara Group. The Jet-Sahara case is pending at the Bombay High Court, which will come up for final hearing next Monday.

During a conference call with analysts after the release of first quarter results late last month, the airline had said it would sell off this plot once the court verdict was out.

That apart, Godrej Properties will also sell to Jet Airways 1,61,460 sqf of carpet area at development cost, where the Naresh Goyal promoted airline will move its headquarters on completion, the developer said in a release here.

Jet Airways' senior vice-president for finance Shiv Kumar could not be contacted for comments.

Godrej Properties will develop an approximately 1 million square feet of office space on the plot which will be completed in three years, the company said. Godrej Properties and Jet will share profits from the development in 50:50 ratio, the release said.

Leading architects Skidmore, Owings, & Merrill, which has designed many outstanding developments across the world, including the world's tallest building the Burj Khalifa in Dubai, has been signed on as lead architect.