Bank of Baroda tops bidding for Jet Airways' BKC office in insolvency auction

A government-appointed liquidator listed the entire floor of the 19-storey tower for sale last month, setting a reserve price of ₹335.24 crore for the prime commercial property

In a move under the ongoing Jet Airways insolvency proceedings, Bank of Baroda has emerged as the highest bidder for the defunct airline’s 83,000 sq ft office space in Mumbai’s Godrej BKC commercial tower, located in the Bandra-Kurla Complex (BKC) business district, according to a report by The Economic Times.

 

The property, comprising an entire floor in the 19-storey commercial tower, was put up for sale last month by a government-appointed liquidator. The reserve price was fixed at ₹335.24 crore.

 

Brookfield has right of first refusal on BKC office

 

Following the bidding process, the liquidator is now expected to notify Brookfield Asset Management, which holds the right of first refusal (ROFR) on the property. Brookfield has 15 days to decide whether it will match Bank of Baroda’s offer to acquire the asset.

 

Brookfield may expand holdings in Godrej BKC tower

 

The report said that Brookfield is likely to exercise its ROFR. The global investment firm already owns two floors in the same tower, purchased in 2020 for ₹490 crore as part of Jet Airways’ insolvency resolution. These floors, spread across the third and fourth levels, span about 180,000 sq ft and include 138 car parking slots. Tenants currently occupying this space include marquee names like the World Bank and PayPal.   

 

  The ROFR agreement at the time also gave Brookfield preferential rights on any additional office space becoming available in the tower — including the currently auctioned second floor.

 

NCLT clears legal hurdles for auctioned office

 

The second floor, currently unoccupied, had been sealed by the Municipal Corporation of Greater Mumbai due to outstanding dues. However, on April 28, the National Company Law Tribunal (NCLT) directed the civic body to unseal the office and cease any recovery proceedings, clearing the way for the sale.

 

The asset is being sold on an “as is where is” basis under the Insolvency and Bankruptcy Code (IBC), with all taxes, liabilities, and transfer charges to be borne by the winning bidder, the news report said.

 

Auction details and Jet Airways’ real estate legacy

 

The e-auction for the property was conducted on June 2 and included 70 dedicated car parking spaces. Interested bidders were required to submit an earnest money deposit of ₹32.5 crore.

 

The Godrej BKC tower was developed in 2011 through a joint venture between Godrej Properties and Jet Airways. The airline had originally acquired the land from the Mumbai Metropolitan Region Development Authority (MMRDA) in 2008 for ₹826 crore before partnering with Godrej for the construction of the commercial building.