Godrej Properties sells 4.35 lakh sq ft BKC office space

Godrej Properties, a Mumbai-based property real estate company, made the largest ever office space transactions in terms of value. The company has sold 4.35 lakh sq ft commercial space at its Bandra-Kurla Complex for Rs 1,480 crore.

Godrej has not revealed the name of the buyer yet but a top official, requesting anonymity, confirmed that pharmaceutical major, Abbott India, has bought the piece of land. Godrej BKC said that its 1.3 million sq ft commercial project will be ready for occupancy in mid 2016.

Godrej Properties had partnered with Jet Airways to develop the commercial area in 2011. Jet Airways had acquired the land parcel in a public auction by MMRDA for worth Rs 399 crore back in 2006.

Both Jet Airways and Godrej Properties, as part of the agreement, will be sharing profits in 50:50 ratio. Jet will also get 2.5 lakh sq ft of area at development cost, while total 1 million sq ft is saleable area.

Pirojsha Godrej, MD & CEO, Godrej Properties, while announcing the deal, said, "We are very happy to have successfully concluded this large and strategically important deal at our project Godrej BKC. This deal will be an important driver of our plans to unlock capital invested in our commercial portfolio and will hasten the pace of our growth going forward."

As per the officials, the company is in talks to sell more space at this commercial project and the funds received through the deal will be utilized to repay debt and will also support future growth opportunities.

According to Cushman & Wakefield, net office space absorption for top eight cities is expected to touch 36.5 million sq ft by the end of 2015; up 18% and 65%, respectively, from absorption in 2014 and 2013.
Image: thinkstock