For real estate monetization, Air India has finalized its deal to sell 4 apartments in South Mumbai
Air India – Real Estate
Air India, the national carrier is ready to take off its plan for real estate monetization, as AI has finalized a deal to sell its 4 apartments in South Mumbai. After three years of gap, again Air India has finally started to sell its properties in Mumbai. Following by many unsuccessful attempts, this national carrier has finalized made a deal with public sector lender State Bank of India (SBI) to sell its 4 apartments, which is located in south Mumbai and the price of deal is Rs 88 crore.
Recently, the Union Cabinet approved the sale of these properties and after that now it is expected that apartments will be handed over to the State Bank of India in the month of December 2015, as per the statement of a top official. As per the statement of an Air India spokesperson, “This is first time when we have actually made deal as per terms and conditions laid in the turnaround plan”.
All the four apartments are 3 BHK flats in Sterling Apartments with measuring carpet area of 2,033 sq ft and the property is located at Peddar Road, South Mumbai. These properties were the houses of top executives of Air India, but now these key officials of national carrier have relocated to New Delhi and after that these apartments were identified as surplus and were put up for deal with SBI.
Turnaround Plan of Air India:
For its turnaround plan, Air India also sought cabinet approval to sale its land in Kolkata which is worth Rs. 25 crore and a residential property in Mauritius (worth Rs. 3.5 crore) to the NBCC (National Building Construction Corporation). Air India, needs to sell the property or real estate assets of Rs 5,000 crore to repay the high-cost debt as well as to generate few more funds for further investment and to meet the working capital, as a part of its turnaround plan of AI. It is expected that in near future AI will sell parcels of land as well as residential and commercial properties in Indian and abroad.
