AI plan to rent out Nariman Point tower hits pricing airpocket
National carrier Air India’s plan to rent out most floors of its iconic 23-storey building in the megapolis that till recently was its headquarters, has hit a stonewall on pricing, as companies are reluctant to pay the rentals being sought by the airline, sources said.
“The airline has set a base rental of Rs 350 per sq ft per month and there are no takers at this price,” Air India sources said
The source, however, added that the problem has come up only at the Mumbai property and the plans for Kolkata, Chennai and Delhi are on as per the schedule.
As per its approved financial restructuring and turnaround plan approved by the Cabinet in early 2012, when it had bailed out the carrier with Rs 30,000 crore dole out, Air India is required to raise Rs 5,000 crore over the next 10 years through asset monetisation and its biggest asset is the iconic Air India building in the tony Nariman Point area of Mumbai.
As part of the asset monetisation programme, Air India will lease out its properties in key cities as well as some overseas properties.
The airline has plans to rent out its properties in Mumbai (its previous headquarters and four flats on the Sterling Apartments on the tony Peddar Road area in south), Delhi (flats on the Baba Khadak Singh Marg), Kolkata and Chennai.
The airline had earlier sounded quite positive following the public sector lender State Bank leasing four floors, measuring 54,000 sqft, on the Air India building here for a hefty rental of Rs 20 crore year.
“The realisation was much higher than the Rs 200-250 a sq ft estimated by analysts, who expect the rentals in the Nariman Point area to fall as business activity in the city shifts to newly developed CBDs like the suburban Bandra Kurla Complex and Andheri,” sources said.
The Directorate General of Shipping (DGS) had initially evinced interest in the landmark property but as the airline stuck to its high base rentals, the plan failed to fructify, sources said.
“The Income Tax and Service Tax departments also want to take up space in the building but higher rentals are preventing them,” sources said.
While the DGS is ready to offer Rs 290 a sqft, Income Tax and Service Tax departments are not ready to offer rents more than Rs 300 a sqft, the source said.
Air India had first tendered for 1.60 lakh sq ft and got interest for 94,000 sq ft. However, it could lease out only 54,000 sqft to SBI.
Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on kemmannu.com to provide the IP address and other details of senders of such comments, to the authority concerned upon request. Hence, sending offensive comments using kemmannu.com will be purely at your own risk, and in no way will Kemmannu.com be held responsible.
Similarly, Kemmannu.com reserves the right to edit / block / delete the messages without notice any content received from readers.
Final Journey of Judith Lewis (91 years) | LIVE From Kallianpur
Obituary : Miss Judith Lewis (91), Milagres A Ward, Kallianpur
Rozaricho Gaanch April, 2024 - Ester issue
Final Journey Of Theresa D’Souza (79 years) | LIVE From Kemmannu | Udupi |
Invest Smart and Earn Big!
Creating a World of Peaceful Stay!
For the Future Perfect Life that you Deserve! Contact : Rohan Corporation, Mangalore.
Final Journey Of Joe Victor Lewis (46 years) | LIVE From Kemmannu | Organ Donor | Udupi |
Milagres Cathedral, Kallianpur, Udupi - Parish Bulletin - Feb 2024 Issue
Way Of Cross on Good Friday 2024 | Live From | St. Theresa’s Church, Kemmannu, Udupi | LIVE
Good Friday 2024 | St. Theresa’s Church, Kemmannu | LIVE | Udupi
2 BHK Flat for sale on the 6th floor of Eden Heritage, Santhekatte, Kallianpur, Udupi
Maundy Thursday 2024 | LIVE From St. Theresa’s Church, Kemmannu | Udupi |
Kemmennu for sale 1 BHK 628 sqft, Air Conditioned flat
Symphony98 Releases Soul-Stirring Rendition of Lenten Hymn "Khursa Thain"
Palm Sunday 2024 at St. Theresa’s Church, Kemmannu | LIVE
Final Journey of Patrick Oliveira (83 years) || LIVE From Kemmannu
Carmel School Science Exhibition Day || Kmmannu Channel
Final Journey of Prakash Crasta | LIVE From Kemmannu || Kemmannu Channel
ಪ್ರಗತಿ ಮಹಿಳಾ ಮಹಾ ಸಂಘ | ಸ್ತ್ರೀಯಾಂಚ್ಯಾ ದಿಸಾಚೊ ಸಂಭ್ರಮ್ 2024 || ಸಾಸ್ತಾನ್ ಘಟಕ್
Valentine’s Day Special❤️||Multi-lingual Covers || Symphony98 From Kemmannu
Rozaricho Gaanch December 2023 issue, Mount Rosary Church Santhekatte Kallianpur, Udupi
An Ernest Appeal From Milagres Cathedral, Kallianpur, Diocese of Udupi
Diocese of Udupi - Uzvd Decennial Special Issue
Final Journey Of Canute Pinto (52 years) | LIVE From Mount Rosary Church | Kallianpura | Udupi
Earth Angels Anniversary | Comedy Show 2024 | Live From St. Theresa’s Church | Kemmannu | Udupi
Kemmannu Cricket Match 2024 | LIVE from Kemmannu
Naturya - Taste of Namma Udupi - Order NOW
New Management takes over Bannur Mutton, Santhekatte, Kallianpur. Visit us and feel the difference.
Focus Studio, Near Hotel Kidiyoor, Udupi
Earth Angels - Kemmannu Since 2023
Kemmannu Channel - Ktv Live Stream - To Book - Contact Here
Click here for Kemmannu Knn Facebook Link