Citigroup may sell its India HQ

MUMBAI: The subprime mortgage market collapse of last year may have an impact on one of the landmark buildings in the Bandra Kurla Complex (BKC). According to real estate market sources, the New York-headquartered Citibank, which has been hit hard due to the crisis, is believed to be actively considering to put its eight-storey tower Citigroup Centre on the block.

When contacted, a spokesperson refused to comment and said the organisation does not discuss these issues with the media. However, reliable sources told TOI that since the past few months word is out in the property market about the imminent sale of Citigroup Centre. With close to 2 lakh sq ft of built up area, the building could fetch anywhere between Rs 500 crore to Rs 800 crore, according to a market estimate.

Those in the know said that after hiving of this prime BKC property, the bank will lease back the same premises. In February, Citigroup had completed a deal in this fashion with its building in Tokyo, Japan. The transaction was, what is called, a sale-and-lease back deal of the Citigroup Center in the Shinagawa district of Tokyo. Citigroup sold this building to its rival Morgan Stanley in a deal reportedly worth $445 million (approx Rs 1,800 crore).

It was almost a decade ago that Citibank moved its main offices from Nariman Point to the BKC. This decision to relocate led to heads rolling — two senior officials in Mumbai were sacked after top bank officials from New York found the BKC location completely desolate and inappropriate. This was in the late 1990s when BKC was yet relatively undeveloped and the top bankers from the US found it sacrilegious that their counterparts in Mumbai had thought of shifting away from Nariman Point, the numero uno commercial district.

The Citibank has been shedding its real estate (mainly apartments) all over the country. In the past one year, it has sold more than half a dozen flats in Mumbai alone.

These include a flat each in Meher Apartments (Altamount Road), Kanti on Mt Mary Road in Bandra, Hormuzd off Carter Road, NCPA Apartment at Nariman Point and as many as five apartments at Harbour Heights building, Colaba.

The Times of India dt. 12 7 2008