Essel Group's Lower Parel Office Auctioned at ₹650 Crore Reserve Price
Essel Group’s Lower Parel corporate office up for auction with ₹650 crore reserve price
Hindustan Times
Image: Hindustan Times
Essel Group's corporate office located at Marathon Futurex in Lower Parel, Mumbai, is set for auction with a reserve price of ₹650 crore. The property, comprising seven floors, is being sold due to outstanding debts totaling over ₹696.85 crore owed to LIC Housing Finance Limited, which has taken symbolic possession of the premises.
- 01The auction will take place on May 26, 2024, for the property measuring 1,45,060.26 sq ft.
- 02Essel Group's subsidiaries, Digital Subscriber Management and Consultancy Services, failed to repay ₹507.25 crore, prompting the auction.
- 03The property was leased to Zee Entertainment Enterprises Limited, generating ₹51.95 crore in rental income in FY2017.
- 04Essel Group has divested several assets since 2018, including its stake in Zee Entertainment and Essel Propack.
- 05The reserve price translates to ₹44,808.96 per sq ft for the commercial property.
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The Essel Group's corporate office located at Marathon Futurex in Lower Parel, Mumbai, is being auctioned with a reserve price of ₹650 crore. This decision follows a failure to repay debts amounting to over ₹696.85 crore owed to LIC Housing Finance Limited, which has taken symbolic possession of the property. The auction is scheduled for May 26, 2024, and includes seven floors spanning a total area of 1,45,060.26 sq ft. The reserve price equates to ₹44,808.96 per sq ft. The subsidiaries, Digital Subscriber Management and Consultancy Services Private Limited and Sprit Infrapower and Multiventures, had not repaid ₹507.25 crore as demanded in a notice issued in January 2024. The property was previously leased to Zee Entertainment Enterprises Limited, generating ₹51.95 crore in rental income in FY2017. Since 2018, Essel Group has been divesting various assets, including stakes in its flagship companies and other businesses.
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The auction of the Essel Group's office could affect local commercial real estate dynamics and may impact rental prices in the Lower Parel area.
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