AI plan to rent Nariman Point tower hits wall

State-owned carrier Air India’s plan to rent out most floors of its iconic 23-storey building in the megapolis,  which until recently was its headquarters, had hit a wall on pricing, as companies were reluctant to pay the rents being sought by the airline, sources said.     

“The airline has set a base rental of Rs 350 a sq ft a year,  and there are no takers at this price,” an Air India source said. The source, however, added the problem has come up only at the Mumbai property and the plans for Kolkata, Chennai and Delhi are on according to the schedule.     

By its approved financial restructuring and turnaround plan approved by the Cabinet in early 2012, when it had bailed out the carrier with Rs 30,000 crore, Air India is required to raise Rs 5,000 crore over the next 10 years through asset monetisation and its biggest asset is the iconic Air India building in the tony Nariman Point area.

Full report here Business Standard


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