Iconic ILFS Headquarters in BKC, Mumbai Sold to Brookfield for INR 1080 Crore

The remarkable Il&FS building in BKC, Bandra East with a total leasable space of around 4.5 lakh square feet has been sold to Brookfield. The top three floors were formerly used by IL&FS Group offices, which will be removed after the completion of the transaction.

Brookfield has acquired the IL&FS headquarters in Mumbai's Bandra Kurla Complex BKC for Rs 1,080 crore.

The Il&FS building was one of the first few high-end developments in BKC, with a total leasable space of around 4.5 lakh square feet. 

The top three floors were formerly used by IL&FS Group offices, which will be removed after the completion of the transaction.

MMRDA established the Bandra Kurla Complex (BKC) as a substitute for Mumbai's CBD with the explicit intention of slowing future expansion of offices and commercial activity in South Mumbai.

The structure is constructed on a 12,550-square-meter site and has a basement + stilt + ten upper storeys design.

The Capital, which rents for between Rs 250 and Rs 265 per square foot; One BKC, which rents for roughly Rs 325 per square foot; and Godrej BKC, which rents for around Rs 300 per square foot.

When asked what the purchase meant for the area's business sector, real estate specialists indicated Brookfield would spend cash in renovating the building's infrastructure, which is more than 22 years old. This will result in an increase in office space available for renting in the market.

Carlyle Group, PayPal, IDFC, IBM, Avendus Capital, and IL&FS were major occupiers. The total built-up area of the building is 322,268 square feet, with IL&FS owning about 300,624 square feet.

The placement of the IL&FS building as the de-facto Central Business District (CBD) of BKC cannot be surpassed. 

All major banks and corporations have a presence in this area. The rental rate for Grade A office space in BKC is between Rs 220-230 per square foot.

"It's also worth mentioning that Brookfield owns a real estate investment trust, to which this skyscraper will contribute value. As has been the case with comparable purchases in BKC, the building may be rebuilt to the point where major global corporations would pay top cash for a presence here. 

As a result, there is little new office stock under construction in BKC, and a ready-to-move building is unquestionably a big selling point for top-tier tenants as property real estate agencies in BKC, Bandra east.

Additionally, the business said that it has settled debt of Rs 55,000 crore as of March 31.

The cleared debt represents 90 percent of the entire debt projected to be addressed, according to CS Rajan, managing director of IL&FS.

Since its previous report in November, the business helmed by renowned banker Uday Kotak has repaid Rs 2,700 crore in additional debt.


More About IL&FS

Infrastructure Leasing & Financial Services Limited (IL&FS) is an infrastructure development and financing corporation backed by the Indian government. It was founded by banks and insurance firms from the public sector.It is represented in India by about 250 businesses, which include IL&FS Investment managers, IL&FS financial services, and IL&FS Transportation networks (ITNL). 

Its portfolio includes some of India's major infrastructure projects, including the country's longest tunnel, the Dr. Syama Prasad Mookerjee Tunnel, which opened in April 2017. After the firm defaulted on its debts in 2018, the Indian government seized control and installed a new board of directors.