Lenders' attempt to auction Kingfisher House, the erstwhile headquarters of Vijay Mallya- owned, now defunct Kingfisher Airlines, proved to be a damp squib for the fifth time, despite cut in the reserve price.
The 17-lender consortium led by State Bank of India had lowered the reserve price of the property by 10 per cent to £9.35 million from £10.35 million in the previous auction held in March. Before that, in December auction, the reserve price was set at £11.5 million.
"There were lot of enquires for the property from buyers but none of them deposited the bids in the latest auction," said a banker.
Lenders had tried to auction the property for the first time in March last year with a reserve price of £15 million and for the second time in August at £13.5 million. Multiple attempts to sell Kingfisher House failed, even after 38 per cent reduction in the reserve price in various auctions since March last year.
The property is located in the plush Vile Parle area near the Mumbai airport. According to bankers, the property has a huge commercial potential as it is located near airport. "The total size of the plot is 2,400 sq mt and the construction is only on 400 sq mt, which leaves 1,600 sq mt area for development. Four floors are already there and permission for construction of fifth floor is also there. This gives buyers enough scope for redevelopment of the property," said a banker.
In April this year, the 17-lender consortium had managed to sell another prime property of Mallya, Kingfisher Villa, in Goa through a private treaty.
