Jet Airways and Godrej Properties struck a deal to jointly develop 2.5 acres in Bandra-Kurla
Jet Airways will get Rs 500 crore in cash in addition to 300,000 sq ft of built-up space which will be developed by Godrej.
MUMBAI: Jet Airways and realty developer Godrej Properties have struck a deal to jointly develop 2.5 acres in Bandra-Kurla. Jet will get Rs 500 crore in cash in addition to 300,000 sq ft of built-up space which will be developed by Godrej.
Under the transaction, Godrej Properties will be treated as a sub-lessee, while all the applications for approvals from Mumbai Metropolitan Region Development Authority will be sought by Jet, the original lessee. Jet Airways had acquired the land parcel from MMRDA in a public auction for 399 crores in 2006.
Realty consultancy firm DTZ Property Advisors has acted as the advisor for the transaction.
Jet’s decision to retain 300,000 sq ft of built up space in the proposed development originates from the MMRDA’s leasing terms for the original contract between the development authority and Jet that bid for the plot as an end user.
According to the MMRDA lease contract, Jet Airways, the lessee will be allowed to assign only 40% of the built up space on the plot within first five years of completion of the construction, while rest can be phased out after initial five years.
It is believed that Godrej can get global floor space index of around 8 times for the development on this plot, but this will come at a premium to be paid to MMRDA. Godrej, when applies for higher FSI here through Jet will have to pay Rs 11,000 per sq ft to the development authority. Ends
Under the transaction, Godrej Properties will be treated as a sub-lessee, while all the applications for approvals from Mumbai Metropolitan Region Development Authority will be sought by Jet, the original lessee. Jet Airways had acquired the land parcel from MMRDA in a public auction for 399 crores in 2006.
Realty consultancy firm DTZ Property Advisors has acted as the advisor for the transaction.
Jet’s decision to retain 300,000 sq ft of built up space in the proposed development originates from the MMRDA’s leasing terms for the original contract between the development authority and Jet that bid for the plot as an end user.
According to the MMRDA lease contract, Jet Airways, the lessee will be allowed to assign only 40% of the built up space on the plot within first five years of completion of the construction, while rest can be phased out after initial five years.
It is believed that Godrej can get global floor space index of around 8 times for the development on this plot, but this will come at a premium to be paid to MMRDA. Godrej, when applies for higher FSI here through Jet will have to pay Rs 11,000 per sq ft to the development authority. Ends
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
