MUMBAI: Pune-based Panchshil Realty and US-based private equity giant Blackstone have emerged front-runners for buying Citibank’s old headquarters at the Bandra-Kurla Complex, Mumbai’s prime business district. They have jointly bid Rs 186 crore.
Citibank had put this building on the block last year and appointed CBRE group as its consultant.
According to sources, the company was expecting Rs 300-350 crore, valuing the current bid about 37 per cent lower at Rs 22,000 per square feet.
The seven-floor building, Citigroup Centre, spread over 84,000 sq.ft, served as the investment bank’s India headquarters until April last year. Thereafter, the bank shifted a block away to its new location — the 2.97-lakh-sq-ft First International Finance Centre purchased for Rs 985 crore.
A person familiar with the development said it made sense for the bank to monetise its real estate assets and make efficient use of its capital.
However, when contacted, the bank declined to comment while CBRE Chairman and Managing Director Anshuman Magazine said it was too early to say anything on the deal.
According to industry experts, companies have of late stepped up efforts to sell their non-core realty assets even as they also buy properties that offer a good deal.