Mumbai: On Friday, Godrej Properties Limited (GPL), the real estate development arm of the Godrej Group, announced that the firm has signed an agreement with Jet Airways Ltd to mutually develop the 2.5-acre property owned by Jet at the Bandra-Kurla Complex (BKC).
GPL will develop about 10 lakh-sq ft office building that will be completed in 3 years. GPL will take on the Rs 360 crore debt responsibility Jet Airways has on the property and will also pay Jet Rs 135 crore to compensate them for expenses that have already been acquired, the sources said.
According to the reports, GPL and Jet each will share 50 percent of the profits from the development. Furthermore, GPL has settled to sell 1, 61,460 sq ft of carpet area to Jet at development cost. This space will be used as state-of-the-art recent headquarters for Jet Airways.
The companies said in a statement that “The space will be used as the state-of-the-art new headquarters for Jet. GPL and Jet will share the profits from the development in a 50:50 ratio.”
“GPL has created a special purpose vehicle (SPV) to execute the project. Jet’s Rs 350-crore debt will be transferred to this SPV,” the sources said.
Skidmore, Owings & Merrill, a leading architectural firm that has intended lots of outstanding developments across the world, including the world’s tallest building, the Burj Khalifa in Dubai, has been hired as the lead architect.