IL&FS wishes to fetch Rs 1,500 crore by selling its headquarters in Mumbai.

Crisis-hit IL&FS will be inviting initial bids to sell its corporate headquarters in the Bandra-Kurla Complex (BKC) in Mumbai at the end of this month, almost two years after the debt-ridden infrastructure lender folded, two people with direct development knowledge said.

By the end of this financial year, the organisation aims to monetise the high-end office property, with a sale estimated to hit Rs 1,500 crore.

Though discussion has taken place for some time about monetization of the property in the new central district of Mumbai, IL&FS now has a final timeline in place.

“This is a process regulated by the NCLT, so multiple permissions are necessary at all stages. It might take a lot of time, but they plan to get deals by the end of next month,” said one of these people.

One of the first buildings in BKC, in fact central business district of the country’s financial capital, has been the famous 10-story property.

IBM, IDFC, The Carlyle Group, Avendus and Paypal belong to the list of main tenants of the office building with a surface area of about 4.5 lakh sq.ft. Roughly 40% of the property is used by IL&FS Group company offices and these can be vacated when the deal draws to an end.

The company has served as an advisor in the proposed deal with international property consultant CBRE South Asia.

This asset is monetized by the government-appointed IL&FS Board to manage its debts. In a presentation, the Board announced that by March 2021, it plans to recover Rs 900 by selling real estate assets, and Rs 1200 by further selling after this date.

The headquarters building itself has mortgaged for Rs 400 crore and the proceeds from the sales will be used to fund the loans by HDFC, a Home Loan firm.