Tepid response for big Worli centre, HUL may go for bids
Consumer product giant Hindustan Unilever Ltd (HUL) that had put its training centre in Mumbai on the block two months ago, is now opting for a bidding process after the company was unable to get any favourable offers. Sachin Dave reports.business Updated: Jun 21, 2011 20:55 IST
Consumer product giant Hindustan Unilever Ltd (HUL) that had put its training centre in Mumbai on the block two months ago, is now opting for a bidding process after the company was unable to get any favourable offers.
A couple of real estate developers and sector-focused PE funds were approached through a real estate consultantcy for the sale of the 3,764 sq-metre or 40,515 sq-ft building on Worli sea face. “The building has an FSI (floor space index) of 1.3 and could see some tough bidding. There has been a recent land deal in Worli that might be taken as a benchmark by bidders,” said a top executive with a PE fund who too has been approached.
According to real estate consultants, the value of the property can be anywhere between Rs 200 crore and Rs 250 crore. "But either the company is expecting more or they did get offers anywhere closer to this figure and hence the bidding," said a person close to the development.
Some developers were believed to be in touch with HUL regarding the sale but the deal could fell through.
An email query to the company did not elicit any response.
HUL has been selling its non-core assets including some premium apartments since 2007. The company plans to raise at least Rs 700 crore from the sale of two buildings this year — the one in Worli and another in South Mumbai. It is also looking to sell the iconic Lever House in South Mumbai measuring around 1.5 lakh sq ft of carpet area, which is likely to fetch Rs 500 crore.