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Manju AB
Mumbai, Nov 18: The Aditya Birla group is negotiating with ICICI Ltd to buy out the term-lending institution's corporate headquarters in south Mumbai.
The AV Birla group is keen on buying the entire property (55,000 square feet) located at 163 Backbay Reclamation for Rs 60 crore. At present, the Birla group's corporate office is also located at Backbay Reclamation, a few buildings away from ICICI House. The financial institution, it is learnt, is bargaining for a higher price of around Rs 90 crore to Rs 100 crore.
Although negotiations are on to arrive at a mutually acceptable price, sources say the deal may be struck soon, as the AV Birla group needs additional space for its office expansions.
ICICI, sources say, is asking for a price of around Rs 16,000 per square foot. Real estate prices in and around Nariman Point (where the ICICI head quarters is located) is hovering around Rs 10,000 to 12,000 per square foot, and the offer made by the Birlas, it is learnt, works out to Rs 12,000 per square foot.
The Birlas declined to comment on the matter. "We would not like to comment on this issue," an AV Birla group spokesperson said. ICICI officials confirmed that the institution is shifting its headquarters to the Bandra-Kurla Complex. "We are shifting to the suburbs but have not yet decided on the disposal of the property," ICICI sources said.
ICICI new office at the Bandra-Kurla complex (measuring three lakh square feet) is nearing completion.
Some of the departments have been shifted to its new premises and sources say that ICICI may only retain a small office at south Mumbai after the corporate head office is disposed off. However, Central Bank which occupies the ground floor of the building will continue to do so.
The trend among corporates to shift to the suburbs is gathering momentum for want of larger space at cheaper rates in south Mumbai. According to a study conducted by real estate consultants Knight Frank, there is an oversupply of commercial space as the suburbs open up with increased facilities and quality office space.
The Knight Frank report notes that the Bandra-Kurla complex is characterised by the new developments as many corporates like Citibank, IL&FS, UTI among others have purchased land and developed their own buildings. Prices for office space in their Bandra-Kurla complex here ranges between Rs 6,000 to Rs 10,000 per square foot.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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