Firm puts heritage bldg on the block
Mackinnon & Mackenzie, a company listed in the Bombay Stock Exchange, has put its heritage building in Ballard Estate on the block. It is expected to fetch the firm around Rs500 crore.mumbai Updated: Oct 19, 2011 01:15 IST
Mackinnon & Mackenzie, a company listed in the Bombay Stock Exchange, has put its heritage building in Ballard Estate on the block. It is expected to fetch the firm around Rs500 crore.
“The iconic building boasts of a sellable area of around 1.4 lakh sq ft. The valuation of the property could be around Rs 500 crore,” said an official.
The Mumbai Port Trust has leased the building to Mackinnon and Mackenzie for 99 years, and the firm is looking at sub-leasing the imposing sandstone building, which was constructed in early 20th century soon after land was reclaimed and Ballard Estate was set up as a business district between 1914 and 1918.
“A French luxury apparel maker and an American bank have approached us. We may not sub-lease the entire space or we may do so, it depends on the offer we get,” a senior executive with the company said, on condition of anonymity.
“Both the French firm and the American bank want to sub-lease the whole property, which is a notified heritage structure,” added the official.
Industry sources said Mackinnon & Mackenzie could get a rent of Rs 350 per sq ft per month for this property. The building has some other tenants as of now, “but depending on the offer, the new tenant could take over the entire area,” the executive said.
It is believed that the funds raised from the property transaction will be pumped into the company, which is involved in the shipping business and cargo handling.
Of late, several big companies, including Hindustan Uniliver, have exited south Mumbai, where real estate is at a premium.
While HUL expects around Rs 500 crore from the sale of its building, the US consulate, which has decided to sell its property, expects to get Rs 1,200 crore to Rs 1,500 crore, as per industry estimates.