LIC is looking to acquire real estate assets of IDBI Bank as part of the majority stake acquisition process.
Life Insurance Corporation of India’s (LIC’s) bid to acquire IDBI Bank by is likely to have the bank’s real estate assets make or break the deal. Sources told Moneycontrol that while LIC has expressed a desire to acquire real estate assets of IDBI Bank, it may not be willing to sell them.
“Real estate assets will ideally need to be a part of the acquisition structure. We are in talks to work that out,” said a senior LIC official. He added that this would one of the pre-conditions of the deal.
LIC is in talks to acquire majority stake in IDBI Bank. The proposal is being finalised and will be sent to the cabinet for approval in the next few days. Following which, the deal will be referred to Reserve Bank of India (RBI), Insurance Regulatory and Development Authority of India (IRDA) and Securities and Exchange Board of India (SEBI) for approval.
In February 2018, market regulator SEBI bought IDBI Bank’s seven-storey office building in Bandra-Kurla Complex (BKC) for approximately Rs 1,000 crore.
The 3.21 lakh square feet building was the second largest deal in BKC since 2013.
The lender’s total real estate assets including land holdings, residential and office buildings are collectively worth Rs 7,000 crore. IDBI Bank has more than six properties in prime locations across Mumbai.
In August last year, the bank proposed plans to sell two residential properties and four commercial properties.
The residential properties are in the well-known Rajesh Mansion and Mittal Castle plots in Mumbai’s premium locations. The commercial properties on offer include the Minerva Theatre land plot, a unit in Corporate Park Chembur, an entire floor in Mafatlal Centre at Nariman Point and an office area in Mittal Court, Nariman Point.
In FY18, the government-owned bank realised almost Rs 4,400 crore through the sale of its investments in non-core assets including the BKC property sale.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
