ICICI eyes Rs 100-cr gain with sale of staff apartments

Aug 13, 2013, 01:18 IST | Varun Singh

Bank selling premium Prabhadevi property measuring 21,429 sq ft off Dadar Chowpatty

It’s prime property in Prabhadevi, hardly 100 metres from Dadar Chowpatty. And its owner, India’s largest private sector bank, has put it up for sale.

On sale: ICICI Bank apartments at Prabhadevi. Pic/Datta Kumbhar

The ground-plus-six-storey ICICI bank apartments on the Veer Sawarkar Marg, surrounded by many other banking staff quarters, are currently in use by bank officials but have been put up for sale. According to brokers, the building can fetch the bank as high as Rs 100 crore, considering all aspects in mind.

With a big player like ICICI putting up a whole building – in this case, measuring 2,381 square yards or 21,429 sq ft - on sale, one can expect analysts to draw parallels with the 2008 economic downturn, when a few high-profile banks did the same. And while it may be too early to make such sweeping statements, many claim the signs are visible.

A realtor said, “Generally banks have a lot of Non Performing Assets (NPAs), homes of loan defaulters etc. If they sell their own assets despite them, it’s to gain liquidity to sustain a tough market.”

The ongoing rate in the area crosses Rs 35,000 for every square foot, but in the current times of a slump in the realty market, it may be safe to say the bank would settle for less.

Sources say that the bank has found a prospective buyer and negotiations are on. “We cannot say for certain that the deal has been cut because negotiation is still under way. It may or may not happen. But the building is up for sale. It’s occupied by the staff of ICICI Bank,” said a source associated with the bank.

The bank did not respond to the queries sent by this reporter ’s queries.

Yashwant Dalal, realtor from Prabhadevi, claims that the property value is nearly Rs 100 crore. “The property measuring around 30,000 sq ft including the FSI is at a prime location. With the ongoing rate of Rs 35,000-40,000 per sq ft, the property commands nowhere less than Rs 100 crore.” 

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