Air India receives four bids from property consultants for $900M monetisation plan
Air India, the financially strapped state-owned carrier which is looking to raise Rs 5,000 crore ($900 million) through monetisation of its land assets across the country and abroad over the next 10 years, has received bids from four property consultants to manage the transactions, according to sources close to the development.
Air India has set a target of raising Rs 500 crore through either sale or development of the properties by March 2013.
Four international property consultants bid on the request for proposal, including Jones Lang LaSalle India (JLL India), Cushman and Wakefield, Knight Frank and DTZ & Colliers, a source privy to the development told VCCircle on condition of anonymity. “JLL India is the L1 bidder and front-runner for the asset monetisation plan,” he added.
An L1 bidder is one who bids the lowest and typically receives the entire or majority quantity of the work.
E-mail queries sent to three of the bidders (JLL India, Knight Frank and DTZ & Colliers) did not elicit any response till the time of posting this article.
According to Air India’s original plan, approved by the Indian government on May 14 this year, the carrier was supposed to appoint a consultant by June 2012 to go ahead with its asset monetisation programme.
Air India targets to raise Rs 500 crore each year for the next 10 years. On October 10, it asked for proposal bids for appointment of real estate consultants for property monetisation in India and abroad.
Although Air India’s prized Nariman Point commercial office building is not part of this transaction, it includes various other assets.
In the first stage of monetisation, it has put up commercial office space, residential quarters, booking offices and open land parcels in Agartala, Ahmedabad, Amritsar, Aurangabad, Bangalore, Bhopal, Bhubaneshwar, Chennai, Coimbatore, Delhi, Goa, Gurgaon, Hyderabad, Jaipur, Jammu, Kolkata, Mangalore, Lucknow, Mumbai, Nasik, Patna, Pune, Trivandrum, Visakhapatnam and other cities.
Of its international assets, it has put 25,000 sq ft owned property in London on the block and two residential flats in Tokyo of nearly 3,000 sq ft each.
Air India is looking at monetising these assets through long leasing, asset sale, development, redevelopment and leveraging of properties. Through this value-generation programme, the debt-ridden national carrier is looking for upfront lease premium in lieu of the development rights given to the real estate developers. It is also looking at leasing of its surplus owned facilities at various domestic and international airports.
The last date for submission of bids was October 16, 2012. Air India plans to monetise some of its assets within six months of finalising the property consultant.
(Edited by Sanghamitra Mandal)
Xpelair India Pvt. Ltd. is engaged in manufacturing ventilation and heating systems. Its products include domestic ventilation systems, commercial ventilation systems, system ventilation, heating and cooling systems, industrial ventilation systems, spare parts and ancillaries. Xpelair India Pvt. Ltd. is a joint venture between Kingston Holdings, Xpelair Group Ltd. and Glen Dimplex.
Jones Lang Lasalle Property Consultants India Pvt. Ltd. is a consulting and an investment banking firm. It offers capital markets, consulting, corporate finance, lease administration, transaction management, facilities management, project and development and corporate solutions. The firm also provides agency leasing, property and asset management and land services. It caters to hotels and hospitality and industrial logistics sectors. The company was incorporated in 1997 and is based in Mumbai, Maharashtra. Jones Lang Lasalle Property Consultants India Pvt. Ltd. operates as a subsidiary of Jones Lang Lasalle.
- JLL ropes in Ashwinder Raj Singh from IndiaHomes.com as CEO of residential services
- Property consultancy Jones Lang LaSalle adds infrastructure to advisory mandate i...
- Why realty PE firms are skipping previously planned commercial property funds
- JLL to launch another residential fund in strategy flip, eyes REITs for commercial
- IDFC Alternatives raises $123M for maiden domestic realty fund
- Jones Lang LaSalle realigns leadership in Delhi-NCR and Chennai
Cushman and Wakefield India Pvt. Ltd. is a real estate consulting firm. It is engaged in providing consulting services related to commercial property, residential property, retail property and office space. Its services include account management, agency and landlord leasing, corporate finance and investment banking, equity, debt and structured finance, facilities management, global hospitality group, global supply chain solutions, industrial services, investment sales and acquisitions, lease administration, office leasing, project management, property tax services, property and asset management, global retail services, etc. The firm caters to banking and financial services, data centers, education, energy and resources, fast moving consumer goods, healthcare, hospitality, land, legal, life sciences, media, nonprofits, retail, senior housing, technology and telecommunications, transportation and logistics. The company was founded in 1917 and is based in Gurgaon, Haryana with additional offices in United States of America, United Kingdom and Hong Kong.
- Cushman's Sanjay Dutt joins Ascendas-Singbridge as India head
- Exclusive: Cushman & Wakefield’s Sanjay Dutt may join Piramal Group
- Bangalore to see highest office space absorption in 2015: Cushman
- Diamond trader buys Cadbury House in Mumbai for $56M
- Retail rent rises 29% in India y-o-y; New Delhi's Khan Market most expensive reta...
- Cushman and Wakefield starts debt services programme