Investment banker J P Morgan is selling off its office space in Amerchand Mansion, South Mumbai, and has appointed Jones Lang LaSalle as consultants for the sale of the property.
According to sources, the property will not fetch more than Rs 6,500-7,000 per square feet.
Though it ranks among heritage properties in the city, it was initially a residential building.
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The property is also old and the construction is outdated which might make prospective buyers hesitant over forking out money at current rates. The current rate for commercial real estate in that part of the city is Rs 12,000 per square feet.
Brokers said the proximity of a school also makes parking a nightmare around the building. The space available at Amerchand Mansion, spanning across four floors, has an area of around 20,000 square feet, according to a statement made by investment bankers.
The building housed the offices of Jardine Fleming before it was acquired by Chase Manhattan Corporation in April 2000.
According to J P Morgan, the sale is being done with a view to obtain synergies of the merger -- so the management in Mumbai along with the regional real estate business services team is now consolidating the existing Mumbai portfolio of the three separate entities.
However, a spokesperson for the investment bank said that since it was a heritage property it was liable to command a premium over the normal market rates in that part of the city.
According to Todd Lauchlan of Jones Lang LaSalle, "The building is unique in today's market. It offers the owner or occupier a perfect combination of prime location coupled with high quality interior finish."
J P Morgan recently leased over 23,000 square feet of office space in Andheri-Kurla area and is currently in the process of relocating some of its staff to the new premises. The new office space will also be used as JP Morgan's global back office.