Mumbai’s first mall to be auctioned in January for ₹500 crore

Mumbai's SoBo Central mall, formerly known as Crossroads Mall, will be auctioned on January 29, 2024, by Canara Bank to recover dues of ₹230.39 crore. The pandemic and competition from newer shopping options have led to the mall being a non-performing asset. The reserve price for the auction is set at ₹500 crore. The property includes shops and commercial premises spanning over 1,07,691.99 sq ft, excluding the McDonald's outlet. Interested bidders can inspect the properties on January 20 and must deposit ₹50 crore as earnest money.

Mumbai: SoBo Central mall, Mumbai’s first shopping mall, will be auctioned on January 29, 2024. It used to be called Crossroads Mall in the late 1990s – a preferred destination for shopping and socialising at the time. It lost its sheen when newer shopping options mushroomed across the city and suburbs.

Mumbai, India – Dec 28, 2023: A view of Sobo Central Mall at Tardeo, in Mumbai, India, on Thursday, Dec 28, 2023. (Photo by Bhushan Koyande/HT Photo)

The pandemic delivered a body blow to the venture and it has been a non-performing asset for nearly three years.

In August this year, Crisil Ratings had downgraded owners of the mall, Bansi Mall Management Company Pvt Ltd’s, ratings to “D” with the remark “issuer not co-operating” indicating that the company did not respond to information sought by the ratings agency.

The January auction has been put up by the lender Canara Bank, to recover its dues from the owners. The reserve price for the auction has been finalised as ₹500 crore.

The bank has taken symbolic possession of the property under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2022, said the auction notice issued by the bank’s Stressed Asset Management branch.

The property put on the auction block include shops and commercial premises on the ground floor and five floors in Building A admeasuring 28,414.24 sq ft, 4,961 sq ft on ground and fourth floor of Building B, 17,151.96 sq ft on three floors of Building B, and 57,161.58 sq ft on ground and four floors in Building C. The total area available for auction stands at 1,07691.99 sq ft.

Interested bidders will be allowed to inspect the properties on January 20 after which they will have to deposit the earnest money of ₹50 crore on or before the day of the auction.

The area to be auctioned does not include the McDonalds outlet, which has been there since 1999.