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After prolonged negotiations,Jet Airways and Godrej Properties have finally inked a deal for the development of a 2.5-acre plot bought by the former at the Bandra Kurla Complex (BKC) in August 2006.
Godrej Properties will now develop 1 mn-sq-ft of commercial space on the plot for the cash-strapped airline. Managing Director of Godrej Properties Milind Korde said the company would now shoulder the Rs 360-crore debt obligation that the private airline had on the property.
In addition to this,we will be paying Jet Airways Rs 135 crore to make up for whatever it has spent on the plot. The airline will buy from us 1.62 lakh sq ft of carpet area in the project at the construction cost, said Korde. According to rules laid out by the Mumbai Region Development Authority (MMRDA),the planning authority for BKC,the plot owner has to retain 40 per cent of the built-up space owing to which Jet cannot fully dispose the land.
The airlines request to the MMRDA asking it to waive a Rs 101-crore penalty for delayed construction on the plot is still pending,Korde said.
A Jet statement said both companies would share the profit equally. It said the airline would use its share of space in the project for its new headquarters. Skidmore,Owings and Merrill has been appointed the main architect for the project. The company has designed the worlds tallest building Burj Khalifa in Dubai.
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