Air India looking forward to start a REIT
Air India Ltd, India’s state-owned airline, is considering spinning off its real estate assets into a real estate investment trust (REIT) and lists it on the stock exchanges in a move that could give the company significant tax breaks and also improve its finances.
Air India has 800 properties at prime locations around the world; it ended 2013-14 with Rs 19,300 crore in revenue and a loss of Rs 5,388.82 crore; the airline had debt of Rs 40,000 crore on its books as of 31 March. Air India’s 800 properties at prime locations include several acres of land, office buildings, sports stadiums and residential colonies.
The airline’s Mumbai headquarters on the high street of Marine Drive alone is estimated be worth Rs 2,250 crore, according to airline official who declined to be named. Mint is not aware of any valuation exercise undertaken by the airline.
The airline company is looking forward to use its assets into a real estate investment trust and would likely list the so on the stock exchanges. The company has around 800 properties around different locations all around the world.
Source: Mint
