Stanchart Unloading Realty

Standard Chartered Bank is in the process of selectively selling off property of StanChart as well as StanChart Grindlays. The bank, which had last year acquired ANZ Grindlays, plans to unlock the hidden value of the commercial and residential portfolio of real estates of both the banks. The current market price of the real estates is around $130 million.

The bank has already exploited the commercial real estate of Grindlays Garden, Chennai. It has set up its global processing hub there. The bank has also sold off residential properties in Kolkata and New Delhi.

Says Standard Chartered Bank's regional head, strategic sourcing and real estate, India and Nepal, Ajoy Kapoor: "We had disposed off the former regional manger's house in Kolkata and New Delhi. These were palatial buildings. The residential property of the regional manager in New Delhi was sold for Rs 18 crore. The bank is also negotiating to sell off residential properties in Amritsar and Kanpur."

According to Kapoor, when Standard Chartered Bank and Grindlays came into the country, the bank moved into places where the British government had its seats of power. Both the banks had acquired prime properties in Kolkata, Delhi, Kanpur, Srinagar, Darjeeling and Shimla.

"However, as the spending pattern and the commercial activities have changed, the metros and mini metros have become new commercial centres. Today, some of these properties are not required and they could be more valuable to companies like BPL, McDonalds or any of the retail chains. We would like to liberate the money and increase our cash flow," he said.

Kapoor, however, clarified that the bank does not need this sort of money to run the business, and the property cost arbitrage is being looked into before any decisions are taken. The bank is also looking at how the assets can be utilised in the best possible manner.

In Mumbai, the bank is not selling off any of its residential properties. "We have the ability to give our senior management accommodation close to our office. With this, we can also attract people from our competitors," said Kapoor.

The bank has recently signed a memorandum of understanding to sell all assets and liabilities, including transfer of employees, to Jammu and Kashmir Bank. The bank was replicating its Srinagar branch operation in Delhi.