United Spirits has engaged real estate consultant JLL India to initiate bidding process for the deal
The glass facade property where embattled liquor tycoon parked his exotic collection of vintage cars in upscale suburbs of in central Mumbai is up for sale.
United Spirits, the current owner of the property, has engaged JLL India, a real estate consulting firm, for the sale deal.
JLL India has initiated bidding process to take offers from interested players.
JLL sources told DNA Money that the ground floor unit is ideal for a showroom or for having an office space.
A part of the ground floor at Madhu Industrial Estate was utilised by Mallya to park is vintage cars collection and double up as a restoration garage. At least three vintage vehicles – Fiat Balilla, MG and Rolls Royce's Ghost Barker Tourer – are parked inside this 'showroom' property.
The sale was initiated after Mallya failed to buy back certain properties from United Spirits.
According to a real estate analyst, this 559 square metre, or 6,021 sq ft, property should fetch a minimum of Rs 35 crore.
A part of the sale proceeds is likely to be utilised to reduce United Spirits's debt that stood at Rs 3,776.6 crore as on March 2017.
In February 2016, Mallya had resigned as the chairman of United Spirits after a $75 million deal with the company's new owner Diageo. At the same time, he entered into an agreement that allowed him or his nominee to buy up to 13 domestic properties from the company within a certain span of time. These 13 properties were used or occupied by Mallya.
In May, the company had decided to sell the 13 properties, earlier owned by Mallya, who had failed to buy them back within the agreed time span.
Other vehicles from his collection were at his former Goan abode – Kingfisher Villa at Candolim – which now is under State Bank of India's custody. In Goa, there are at least 20 cars worth crores of rupees.
JLL India spokesperson and chief executive officer Ramesh Nair did not respond to queries.
A United Spirits spokesperson too didn't respond to questions on the ongoing sale.
...& ANALYSIS
- Real estate consulting firm JLL India has initiated bidding process to take offers from interested players
- According to a real estate analyst, this 559 square metre, or 6,021 sq ft, property should fetch a minimum of Rs 35 crore
- A part of the sale proceeds is likely to be utilised to reduce United Spirits’s debt that stood at Rs 3,776.6 crore as on March 2017
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