NO TAKERS FOR THE KINGFISHER HOUSE IN CITY
A highly publicised move by banks to sell Kingfisher House, once the headquarters of Vijay Mallya’s defunct airline, drew a blank on Thursday as potential bidders stayed away from the e-auction deterred by a relatively high valuation and possible reluctance to associate with a troubled brand.
Though the auction was conducted by bankers to Kingfisher Airlines, concerns over possible litigation subsequently could also have put off suitors, experts said. They said limited pre- auction time might have cut out large foreign buyers, who typically conduct longer due diligence.
The base price – bids could only be made above it – for the over 2,400-sq metre house was set at Rs150 crore, which when combined with the cost of reconstruction would value the property at over Rs 30,000 a square feet. The going rate in the area is Rs 17,00020,000 a square feet. The bid increment amount was Rs 5 lakh.
CONTINUED ON P10