IL&FS puts more Mumbai properties on the block

IL&FS puts more Mumbai properties on the block – Mail Bonus

After selling its iconic headquarters in Mumbai’s business district, the crisis-ridden financial company Infrastructure Leasing & Financial Services (IL&FS) has added more commercial real estate, including two independent main properties, Business Arcade and IL&FS House in Mumbai.

It is estimated that the revenue generation of these key properties, in the business district of Lower Parel and Chandivali, owned by the company and its wholly owned subsidiaries, will yield over ISK 700 million based on the location and size of these properties, according to real estate consultants.

The Business Arcade shopping tower covers one-fifth of an acre in the Lower Parel’s central business district, totaling 28,591 square meters. The tower developed on the former property of Elphinstone Mill has 14 upper floors with the exception of two basements and one parking space.

IL&FS House in the Chandivali suburb of Mumbai, owned by IL&FS Securities Services, is spread over 0.4 hectares with a total built-up office space of 28,734 sqm consisting of basement, ground floor and 6 upper floors.

Apart from these two entire office towers, IL&FS has also installed two retail units spread over almost 17,000 square meters in

Chambers on Delisle Road, 1 unit in Trade World in Lower Parel, 18 offices in Kohinoor Square in Dadar, 23 stores in Virar’s Residency Park and 1 office in Ahmedabad.

These assets are owned and operated by IL&FS, its subsidiaries IL&FS Financial Services (IFIN), IL&FS Transportation Networks (ITNL) and IL&FS Securities Services (ISSL). The Board of IL&FS has offered to show interest in the proposed asset sales in accordance with the instructions of the Special Bankruptcy Court of the National Company Court (NCLT) in October 2018.

IL&FS has offered to show interest in these properties until 1 August. Completion of any transaction under this Asset Sale Process will be subject to the required approval, including approval required by applicable law and NCLT approval.

IL&FS is generating income from its assets with the aim of managing liabilities. IL&FS ‘failure to meet its repayment obligations in September 2018 had triggered a liquidity crisis that gripped India’s non-bank financial sector.

As part of the clean-up, the government then released the IL&FS board, which has since worked to resolve the debt situation.

“We confirm that these properties are being put up for sale. The sale of real estate is part of the overall resolution plan that the new board has undertaken,” said Sharad Goel, a spokesman for IL&FS. However, he declined to comment on the likely recovery through these offers.

During the term of office of Uday Kotak, Chairman of this Board, on April 2, IL&FS announced that it had paid a debt of Rs 55,000 million, up from Rs 52,200 in November 2021. The group has maintained its overall plan for dissolution. at ISK 61,000 million.

In late March, Brookfield Asset Management, an international non-traditional investment manager, emerged as a successful bidder, buying IL & FS’s headquarters a 10-storey iconic property in Mumbai’s Bandra-Kurla Complex (BKC) business district for more than $ 1,080 million.

The debt to the value of Rs 55,000 million that has been taken out so far is over 90% of the total estimated resolution value. Resolution on the remaining Rs 6,000 million in debt has been entered in the ongoing financial year 2022-23.

The total resolution of the IL&FS estimate of 62% is double the average recovery of 31% according to the Bankruptcy and Bankruptcy Act (IBC). Of the 347 parties under IL&FS Group as of October 2018, a total of 246 credits remain to be resolved, so that 101 credits need to be resolved in the current financial year.

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