Rs 170 crore deal: SBI to buy 4 floors at Mafatlal Centre from IDBI Bank

India’s largest lender State Bank of India (SBI) is in the final stages of buying four floors at Mafatlal Centre in Nariman Point from IDBI Bank in a deal valued close to Rs 170 crore, two people aware of the development told FE.

According to sources, SBI is expected to move a few of its departments to Mafatlal Centre although it could not be immediately ascertained as to which ones these are.IDBI Bank, the current owner of the four floors measuring 62,580 sq feet will relocate its existing offices in the building to its office in World Trade Centre, Cuffe Parade. This deal values per square foot of space in the building at a little over Rs 27,000.

This sale, sources said, is part of IDBI Bank’s plan to sell its non-core assets which include the lender’s stake in certain companies along with real estate assets. The bank has reportedly sold its building in Bandra Kurla Complex (BKC) to the market regulator Securities and Exchange Board of India (Sebi) for Rs 1,000 crore a few months ago.

Emails sent to SBI and IDBI Bank seeking comments remained unanswered till the time of going to press.

According to a document seeking bids, IDBI Bank had sought to sell the four floors in February this year. The document added that while the third-fifth floors are occupied, the second floor is vacant. “The successful bidder is required to pay 25% of the sale consideration apart from the earnest money deposit (EMD) amount, within 15 days from the date of issue of letter of acceptance by the Bank,” the document said, adding that the balance amount (excluding the EMD) be paid within 30 days from the date of issue of letter of acceptance by IDBI Bank.

IDBI Bank, burdened by bad loans for a few quarters now, is facing fresh trouble with the Central Bureau of Investigation (CBI) naming 15 bank officials in relation to loans sanctioned to companies related to former Aircel promoter C Sivasankaran. PTI recently reported that the case pertains to loans of Rs 322 crore and Rs 523 crore given to the companies of Sivasankaran, who was in the centre of Aircel Maxis probe for alleging that then telecom minister Dayanidhi Maran had put pressure on him to sell his company to a Malaysian telecom tycoon, a case in which Maran brothers have been discharged by a special court.