Lenders to revalue Kingfisher House, hope to sell it shortly

Having failed once to sell the Kingfisher House for recovering their loans, banks have begun a fresh valuation process for auctioning the headquarters of the Vijay Mallya’s long defunct Kingfisher Airlines.

The Kingfisher House has a built-up area of over 17,000 sq ft and is located in plush Vile Parle area near the domestic airport. File pic
The Kingfisher House has a built-up area of over 17,000 sq ft and is located in plush Vile Parle area near the domestic airport. File pic

“A revaluation process has begun and will be over by the next week. The property will put on the block again at the earliest,” a source said.

In March, the 17-banks consortium, led by State Bank of India, had tried to sell the property in a bid to recover a part of their dues, which have run up to over R9,000 crore.

The auction was a flop show as no bidders came forward, citing high reserve price which was pegged at R150 crore for the March 17 auction. The lenders had taken over the Kingfisher House in February, 2015 after a long court battle under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.

Last week, the lenders had tried to auction the airline’s brands and trademarks but it also turned out to be a damp squib as bidders, in this case too, found the reserve price of R366.70 crore very high.

The brand Kingfisher was valued at over R4,000 crore by Grant Thornton when the carrier was at its peak being the biggest and the toniest, and was pledged with the lenders in 2011, as collateral for additional loans.

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