Air India properties to go under the hammer again

Air India properties to go under the hammer again

After two failed attempts, Air India is back with its plan to auction some of its prime properties in Mumbai. The properties being re-auctioned are worth Rs 299.7 crore with the carrier increasing prices of the flats and hiring a marketing firm.

The 14-flat building in Bandra, which was being sold at Rs 122 crore in the last auction in July, is now priced at Rs 200 crore. Similarly, prices of other flats have also gone up including those in Malad. Flats which were priced at Rs 85 lakh are now close to Rs 1 crore.

The most expensive individual flat on auction, located in Bandra's Cozihom, priced at Rs 7.40 crore in the July auction is now being sold at a reserve price of Rs 10.36 crore.

The total auction amount for 28 properties including the Bandra building is Rs 299.77 crore. Ashwani Lohani, Chairman, and Managing Director, Air India said that he hopes this time the auctions would be successful this time.

The closing date for bidding for half of the properties is August 31, and September 1 for the rest.

While the auction will be held online by government-owned firm MSTC India, real estate consultancy firm, Cushman Wakefield Property Advisors Pvt Ltd will be marketing the properties.

After the initial online auction, on June 21 for 14 properties, did not find any takers, another e-auction for 15 other properties was held on July 28. While Air India had claimed that buyers had shown interest, they had decided to not go ahead with the auction.

Ashwani Lohani had then claimed that they would merge both the auctions and sell all the properties together.

Air India called off the auction in July stating that bids received were below the reserve price.