Brookfield Buys Jet Airways Office Space In Mumbai’s BKC Through Insolvency Process

According to the news report, Brookfield Asset Management has expanded its presence in Mumbai’s prime business district by securing another floor in Godrej BKC through the insolvency resolution of Jet Airways. The acquisition strengthens its footprint in the premium commercial real estate market while adding strategic control over a prime property.

Brookfield secures asset through Insolvency and Bankruptcy Code process

Under the Insolvency and Bankruptcy Code (IBC) proceedings, Brookfield Asset Management acquired an additional office floor in Godrej BKC, Bandra-Kurla Complex, for ₹370.25 crore. Initially, Bank of Baroda emerged as the highest bidder, but Brookfield exercised its right of first refusal to match the bid and secure ownership. The National Company Law Tribunal (NCLT) oversaw the process, ensuring compliance with all legal and procedural requirements.

Expanded footprint in Godrej BKC

With the latest acquisition, Brookfield now owns approximately 250,000 sq ft across three contiguous floors in the 19-storey Grade-A commercial tower, along with exclusive parking rights. The transaction also grants Brookfield Jet Airways’ seat on the building’s management board, giving it greater influence over strategic and operational matters.

Prime commercial property with high rental demand

Despite being sold on an ‘as is where is’ basis, the property attracted strong interest from potential occupiers. The floor, which had been sealed by the Municipal Corporation of Greater Mumbai over unpaid dues, was reopened in April following an NCLT directive. 

Current rental rates in Bandra-Kurla Complex range from ₹650 to ₹700 per sq ft a month, making it one of Mumbai’s most expensive office markets. Rental values have surged nearly 30% in the past three to four years due to limited supply and sustained demand from multinational corporations and financial institutions.

Brookfield’s previous acquisition and current strategy

Brookfield is not new to the property. In 2020, as part of the same insolvency proceedings, it acquired 2 floors in the building for ₹490 crore. These are fully leased to notable tenants such as the World Bank and PayPal, ensuring steady rental income. 

The latest acquisition aligns with Brookfield’s broader strategy to strengthen its commercial real estate portfolio in Mumbai. Recently, it also secured plot C-80 in Bandra-Kurla Complex, a prime two-acre site with development potential exceeding 3.6 lakh sq ft.

Godrej BKC’s position in Mumbai’s office market

Developed jointly by Godrej Properties and Jet Airways, Godrej BKC has been a preferred corporate address since 2011. Its strategic location, modern design, and high-quality tenant profile place it among the top destinations in Mumbai’s Grade-A office segment. Brookfield’s expanded ownership underscores the continued attractiveness of the city’s financial hub for institutional investors.

Read More: PNB to Sell NPAs Worth ₹5,000 Crore, Aiming for 50% Recovery: MD Chandra! 

Conclusion 

Brookfield’s latest acquisition highlights the continued investor interest in Mumbai’s prime commercial hubs, even under insolvency proceedings. The deal further reflects the resilience of demand for premium office space in strategic business districts like Bandra-Kurla Complex.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.