• Ashu Bisht

All Details of Real Estate Assets That Put Up On Sale By Air India, Aims To Acquire Up To 300 Crore

The debt-ridden company Air India has once again put 28 properties up for sale, including those that failed to sell in previous auctions, by reducing the reserve price for some of the properties. As part of the snail's pace plan to monetize assets as part of the debt-ridden airline's disinvestment process, Air India has announced the electronic auction of several properties - residential, commercial and land - in various major cities.

Bidding Price

According to a tender document issued by the airline and seen by Moneycontrol, the initial bid price of these units ranges from Rs 13.3 lakh to around Rs 150 crore and the airline is planning to raise at least Rs 270 crore from the sale of all these properties. The current auction lot includes several properties that have been put up for sale several times earlier but failed to attract bidders even at the base price.

However, unlike the last few attempts, Air India has reduced the reserve price for some of these properties, especially those in tier-1 cities, to attract buyers, according to a senior official of Air India, who requested anonymity. The reserve prices of the properties have been reduced by about 10 per cent from the last time these properties were attempted to be sold, the official added.

The online auction for Air India will be conducted by MSTC Ltd, which specializes in conducting e-auctions.

Properties put up on sale

There are almost 15 properties, including five flats in Asian Games Village Complex in South Delhi, a residential property in Mumbai spread over an area of 2006 sq ft with 14 flats with a built-up area of 2030 sq ft in Pali Hill, Bandra. The price of the duplex units in Asiad Games Village ranges between Rs 4 crore to Rs 5 crore and Rs 9 crore to Rs 10 crore for independent bungalows and the price for the plot in Bandra, Mumbai is around Rs 150 crore, sources told Moneycontrol.

There is also one 3BHK unit and two 2 BHK units in Sachin da Strains, Gasdar Scheme, Santacruz, Mumbai which are priced between Rs 2 crore and Rs 4 crore.

The company is auctioning a 5,934 sq ft plot in Gangamuthanhalli Village, Devanahalli District, Bangalore and four 2BHK units in Uday Shankar Sarani, Golf Green, Kolkata. The price of the residential plot in Bengaluru is around Rs 4 crore, while the apartments in Kolkata are priced at around Rs 50 lakh. In Aurangabad, Maharashtra, it has booking offices and staff accommodation listed in Town Centre in Bajipura, Aurangabad, six units of CIDCO 2BHK flats in Swami Vivekanand Nagar, Nashik, and booking office in Civil Lines, Nagpur. The prices of the properties in Aurangabad ranges between Rs 4 crore and Rs 5 crore and between Rs 20 crore and Rs 22 crore.

In Gujarat, a residential plot (about 231 sq ft) in Ghanshyam Nagar and an Airlines House at Station Road in Bhuj has been put on sale. A flat in Hoisala, Diana Complex, Kadri, Mangalore; a residential plot in NCC Nagar, Peroorkkada, Kadappanakunnu Village, Thiruvananthapuram are also part of the list.

Why to buy these properties?

A Mumbai-based real estate consultant said that buying these properties might be a good idea as both their values and mortgage rates are reasonable. An e-auction like this is a win-win for both the party selling the property and those buying it, as customers get a titled and ready property offered at a fair market value.

Those wishing to participate in the e-auction should bear in mind that these are older properties and therefore their valuation is fair when compared to new complexes being built in the same areas where encumbrances may occur. Also, there are no brokers and it is a direct transaction.

"There may be no fancy amenities, but you get what you pay for. In short, the prices are realistic compared to new properties in the same location," the consultant said. He also added that apart from the price of the property, the buyer will also have to pay stamp duty and registration fees and he may also get a home loan.