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

In a major respite for debt-ridden Jet Airways, the Naresh Goyal-controlled airline has clinched a deal with Godrej Properties Ltd to develop a property it had acquired in August 2006 in the Bandra Kurla Complex (BKC) in Mumbai through an auction by the government.

Due to financial constraints, Jet was unable to construct a building on the piece of land, which was acquired for Rs 339 crore from the Mumbai Metropolitan Region Development Authority.

Jet had planned to construct its headquarters on this land but could not start development on its own. For several months the had been looking for a partner for joint development and now the deal has been finalised.

Godrej Properties, the real estate arm of the Godrej Group, on Friday announced its entry into an agreement with Jet Airways to develop the property BKC. According to the deal, Godrej Properties will develop one million sq ft of saleable area in the proposed office building that is likely to be completed in three years.

Godrej Properties has agreed to take over Jet Airways' Rs 360-crore debt obligations on the property and will also pay additional Rs 135 crore to the airline towards the expenses that it had incurred earlier. Additionally, Godrej has agreed to sell 161,460 sq ft of carpet area to Jet at development cost. This space will be used as the carrier's new state-of-theart headquarters. The rest 838,540 sq ft space will be sold in the open market.

According to the agreement, Godrej Properties and Jet Airways will equally share the profit (50:50) from this development. "We look forward to creating a landmark at BKC that will be built to world class standards. We will pay special attention to the design, quality and functionality of the building to ensure that it enhances the vibrant environment of BKC," said Pirojsha Godrej, executive director, Godrej Properties.

"We have been looking for a right partner to develop this property. We are confident that their (Godrej Properties) expertise will help us execute our vision to create a commercial workspace of global standards - a distinct addition to Mumbai's cityscape," said Nikos Kardassis, chief executive officer (CEO), Jet Airways. Godrej Properties has roped in Skidmore, Owings and Merrill as the lead architect for the project.

Courtesy: Mail Today