Kishore Biyani settles lenders’ dues by selling SOBO mall to K Raheja Corp
Future Group promoter Kishore Biyani has settled dues worth Rs 571 crore to lenders of Bansi Mall Management Company by making a one-time settlement of Rs 476 crore, a recovery of 83% for the creditors.
The settlement was backed by realty developer K Raheja Corp., which acquired SOBO Central Mall. Earlier known as Crossroads, SOBO Central is the country’s first mall, having opened in late 1990s in south Mumbai's Haji Ali locality.
The recovery from Future Group is a rare success story for banks who had suffered loan write-offs and losses in several cases previously.
Creditors led by Canara Bank had put the property on the block to recover their dues and had already received a bid worth Rs 475 crore. However, Biyani made a counteroffer to settle the dues at Rs 476 crore and it was accepted by lenders.
K Raheja Corp. Real Estate, a group company of K Raheja Corp., has acquired the mall with leasable area of nearly 150,000 sq ft. It has paid stamp duty of Rs 28.56 crores for registering the deal that took place on Monday, showed documents accessed through Propstack.
“This was a back-to-back transaction. Raheja paid the banks directly in lieu of which the mall was transferred to the company," Biyani said.
The money was distributed among the lenders earlier this week.
ET’s email query to K Raheja Corp remained unanswered till press time.
At present, SOBO Central lacks tenants apart from a McDonald's outlet that opened during its inauguration in 1999. Initially successful, the mall later faced a decline due to
