Corporates put their Commercial Properties on Market
In the current environment, renting an apartment works out to be much cheaper than outright purchase.It’s the newer properties where one notices sluggish sales because of their high rates. A trend of buyers look at old properties with a substantial number translating into sales. Not surprising then that corporates who own flats in such good buildings are putting them in the market.
Keen on consolidating their financial position, three big companies have put their flats and commercial properties on the market. One of them, Bishopsgate, is a five-storeyed residential building co-owned by Standard Chartered and the Hongkong and Shanghai Bank Corporation Ltd in upscale Breach Candy. Located opposite the Breach Candy club, the building is spread over 2,075 sq metres or approximately 22,000 sq ft. Its market value: a cool Rs 300 crore. Senior bank executives, including the chairman of banking biggie HSBC, currently reside in the 20-odd flats of 3,000 sq ft each.
Property sources say Citibank is likely to put its 2,500 sq ft apartment at Il Palazzo on Malabar Hill back in the market later in the year. It may be recalled that former BJP MP and actor Vinod Khanna had quoted an astounding Rs 1.25 lakh per sq ft for the flat, but the deal fizzled out later. Citibank, a leading US-based bank, recently put up for sale a 3,000 sq ft flat in Usha Kiran building on Altamount Road for an estimated price of Rs 18-20 crore.
Property consultants are not surprised by the move. “The reason simply is to show a healthy balance sheet. There is no point in blocking assets worth crores of rupees in maintaining a property,” said Pranay Vakil, chairman of Knight Frank.
Hindustan Unilever Limited too has put on the block two seven-storeyed buildings: their former headquarters at Churchgate and Gulita, a training centre at Worli sea-face. Three lending institutions—State Bank of India, Bank of Baroda and a large non-banking finance company—are said to be frontrunners for the Churchgate building. Spread over 1.54 lakh sq ft, the property is said to be worth approximately Rs 500 crore in the open market.
Altamount Road, Commercial properties, Commercial Property, Corporates, housing society at Altamount Road, Mumbai, Mumbai Properties, Mumbai property sales, Property Buyers, Renting an apartment, Residential building
