MUMBAI: Reliance Infrastructure has mentioned that it has offered Reliance Centre – the premises housing the group’s headquarters – to Yes Bank for Rs 1,200 crore.
“Entire proceeds from the sale of Reliance Centre, Santacruz, is utilized solely to repay the debt of Yes Bank’, the corporate mentioned in a press release to the trade.
In July, the non-public lender had taken symbolic possession of the sprawling advanced located off the Western Express Highway and overlooking the Mumbai airport. The motion was taken underneath the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act to recuperate dues of Rs 2,892 crore from Anil Ambani’s Reliance Infrastructure. In phrases of the act, the financial institution has to give a two-month discover earlier than taking possession, which the financial institution had completed in May.
Speaking to TOI in October 2020 after the financial institution’s half-yearly outcomes, Yes Bank MD & CEO Prashant Kumar had mentioned the financial institution would love to monetise it however would take into account shifting its workplaces from its current headquarters at Lower Parel in Central Mumbai to Santa Cruz
While there may be uncertainty over the way forward for industrial actual property given the shift to work at home, non-public fairness traders are nonetheless bullish on workplace house.
Yes Bank presently operates out of the Indiabulls Finance Centre in Lower Parel the place it leased the highest six flooring. According to information studies in 2011, the deal was struck at Rs 125 per sqft monthly for 1.6 lakh sqft. However, for the reason that reconstruction of the financial institution after its revival by traders led by SBI, the lender has been chopping prices. It has requested all workplaces to renegotiate leases and has been rationalising branches and ATMs.
Reliance Group had shifted to the brand new headquarters in 2018. After its debt disaster, the group has shrunk its operations. Besides Reliance Infra different group firms together with Reliance Capital and its subsidiaries had been headquartered there. Most of the workplaces had been consolidated within the north wing and a part of the property was listed for lease. The lockdown due to the pandemic resulted in additional consolidation of workplace house as workers had been requested to work at home.