AI plan to rent out building finds few takers

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SummaryNational carrier Air India has got a poor response to its plan to rent out its headquarters at Nariman Point in Mumbai.

National carrier Air India has got a poor response to its plan to rent out its headquarters at Nariman Point in Mumbai. The tender floated by it to lease out 18-19 floors of the total 22 has received only two responses so far. The last day for receiving the offers is November 29.

“There is hardly any response from the companies. We have got only two bids so far. That’s why we extended the date of submission of bids from November 3 to November 29,” said an official.

The landmark building at Nariman Point is one of the prime properties in the area. “In case the response is not encouraging we may extend the deadline further,” the official said. “There are still a lot of clients, including airlines and foreign consulates, that prefer Nariman Point for their offices and are willing to pay a premium for it. The responses on the bid would also depend on the way you market the properties,” Anuj Puri, chairman and country head of Jones Lang LaSalle, the real estate services firm, said.

The carrier plans to raise R500 crore this year through the monetisation of its 105 properties. It has also invited bids from real estate consultants. According to airline sources, it has received bids from four consultants, including Jones Lang LaSalle India, Cushman & Wakefiled, DTZ and Colliers India. While the real estate consultant would advise the airline of all other properties, for its Mumbai office, the airline has already started the process of leasing out around 159,000 sq ft area.

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