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Property auction: Air India gets third time lucky

Government-run MSTC India held the auction of properties, which were estimated to be worth upwards of Rs 299.7 crore.

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After two failed attempts to auction some of its properties in prime locations in Mumbai, it seems to be a case of third time lucky for Air India. Since June, the national carrier has been trying to sell properties in several parts of Mumbai, but in vain. On Thursday and Friday, however, they held an auction of two lots of properties, and this time, the auction proved successful.

Authorities from the auctioning company say that now only approval from Air India is awaited, after which, the deals will be finalised. After two failed rounds of auction, Air India had hiked the prices of the properties, and also hired a real estate consultancy firm to sell the properties.

Government-run MSTC India held the auction of properties, which were estimated to be worth upwards of Rs 299.7 crore.

A senior official from MSTC India associated with the auction said, "Unlike the last two auctions, this time, the response was good, and deals have taken place. The only thing awaited is approval from Air India, and only after that can the deals be finalised."

In June, when Air India had tried selling properties, it had failed to get any takers, however, in July, the responses received were lower than the reserve price. Following this, then Air India chief Ashwani Lohani, had said they will be using aggressive marketing strategy to sell the properties. This seems to have paid off.

Air India had hiked the price of flats, the most expensive individual flat among the first two auctions located in Bandra's Cozihom, which was priced at Rs 7.40 crore in the July auction, was pegged at a reserve price of Rs 10.36 crore.

The auction amount for 28 properties, including a Bandra building inclusive of 14 flats, was Rs 299.77 crore. A senior official from Cushman Wakefield, who didn't wish to be named, said, "The auction was being done online, and we are yet to receive details on them. One part was conducted on Thursday, and the second on Friday."

The closing date for bidding for half the properties was August 31, while for the remaining properties it was September 1. Apart from the 14 flats in Bandra priced at Rs 200 crore, the auction included 16 flats in Malad, eight each in Taurus and Satyam building. Every flat in Satyam was priced at Rs 1.13 crore, while flats in Taurus went at Rs 98 lakh. There were four flats in Jupiter building located in Cuffe Parade of which three were priced at Rs 9.01 crore, while one was priced at Rs 8.37 crore. Three flats in Khar were pegged at Rs 5.15 crore, Rs 4.88 crore, and Rs 4.27 crore each. Two flats in Venus building were priced at Rs 8.13 crore and Rs 8.37 crore.

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

Despite attempts, no comment was received on the matter from Air India.

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