06 August,2011 12:55 AM IST | | A Correspondent
The real estate wing of the Godrej group Godrej Properties Limited entered into an agreement with Jet Airways yesterday to jointly develop a 2.5 acre plot of land owned by the latter in Bandra Kurla Complex (BKC).
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Godrej will develop nearly one million square feet of the land in a three-year period.
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Godrej will take on the Rs 360 crore debt obligation Jet Airways has on the property, and will also pay Jet Airways Rs 135 crore to compensate for expenses that have already been incurred.
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Godrej has also agreed to sell 1,61,460 square feet of carpet area to Jet at development cost. Both companies will share the profits from the development in a 50:50 ratio.
Pirojsha Godrej, executive director, Godrej Properties said, "We are happy to have partnered with Jet Airways on this project and look forward to creating a landmark at BKC that will be built to world class standards and one that both Godrej and Jet will be proud to be associated with."
Nikos Kardassis, chief executive officer, Jet Airways, said, "We have been looking forward for a right partner to develop this property in the leading business district of Mumbai.
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The development of our BKC plot is a strategic decision and we are delighted to be associated with Godrej Properties Limited."
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