Global financial services major Merrill Lynch, which is a unit of Bank of America, has offered for sale two of its office premises at Nariman Point, the central business district of the country’s commercial capital.
One property, which has an area of 11,845 square feet, is located in Tulsiani Chambers. The second, in Raheja Chambers, is much smaller: 1,580 sq ft. The total space for sale, thus, is 13,425 feet. Bank of America has nearly 100,000 sq ft of office space in Nariman Point, most of which is leased. The proposed sale will happen through open auction, reveals a source. The bids will be opened in the third week of next month, he adds.
Property consultants estimate that New York-based ML will earn at least Rs 50 crore from the sale of the two properties, given that the value of properties in these buildings hover between Rs 25,000 and Rs 30,000 per square feet. As for ML, it has set a threshold price of Rs 16,000 per sq ft, according to a person who has seen the bid documents.
An executive who has knowledge of the matter says Bank of America has “sufficient space” in Express Towers, also in downtown Nariman Point (which has land reclaimed from the sea). “They got these properties (ones that are being sold) by the virtue of their acquisition of DSP Merrill Lynch in India. They are not using them; so they want to sell them off,” he adds.
Raja Seetharaman, who is managing director (India) of property consultancy Aperon TCN Worldwide, says 1914-founded ML is trying to rationalise its real estate portfolio. “They have been at many locations. After the merger, I think they want to be at one place. That, certainly, helps,” he adds.
Another head of a property consultancy claims a lot of global corporations are increasingly moving out of Nariman Point to suburbs, as they get better infrastructure, office amenities, parking and so on there at the same prices. “They prefer to keep front offices in Bandra Kurla Complex and back offices in Powai, Airoli, Goregaon and others,” adds the person, who does not want to be quoted.
Recently, global banking majors Standard Chartered and Hong Kong and Shanghai Banking Corporation sold Bishopgate, a five-storey residential tower they co-owned at upscale Breach Candy area, close to Nariman Point, to property developer Peninsula Land for Rs 272 crore.
More From This Section
The US consulate has put for sale two of its marquee properties — Lincoln House and Washington House — in the same area up. It expecting around Rs 1,500 crore from the sale.
Hindustan Uniliver, a unit of UK’s Unilever, is also selling its erstwhile headquarters in Churchgate area here, besides its one-time training centre in Worli.