Struggling infrastructure lender IL&FS has submitted a new application to the Mumbai Metropolitan Region Development Authority (MMRDA) seeking approval for the transfer of its headquarters, a renowned 10-story property located in Mumbai's Bandra-Kurla Complex (BKC), to global institutional investor Brookfield Asset Management. While the authority recently granted approval for the sublease of the property, known as The IL&FS Financial Center (TIFC), based on IL&FS's request, the sale approved by the National Company Law Tribunal (NCLT) is for a complete transfer.
A senior MMRDA official informed "The current approval for the transaction is based on IL&FS's application, and a revised approval will be issued after reviewing it under the land disposal policy." stating that the MMRDA's granted approval deviates from the one sought for the assignment or sale of TIFC according to the NCLT order, which constrains both parties' ability to finalize the transaction as per the agreed terms. IL&FS has requested a re-issuance of approval from MMRDA.
Brookfield indicated that the property transfer is in advanced stages, with various approvals secured, including clearance from the NCLT. The affiliate of Brookfield, Chronos Properties, signed a definitive agreement in March 2022 and has already disbursed a significant portion of the purchase consideration. The deal is expected to conclude shortly, according to a Brookfield spokesperson.
The transaction, valued at over Rs 1,080 crore, involves one of the iconic properties in BKC, encompassing 4.5 lakh square feet. IL&FS has already received 10% of the total consideration. This deal is part of the resolutions filed by the government-appointed board with the NCLT under the Insolvency and Bankruptcy Code (IBC) in 2016. The IL&FS Financial Center, one of the initial structures in BKC, holds significance in India's commercial landscape.