HUL puts prime real estate assets on block - Indian Real Estate Forum

25-07-07

Consumer products heavyweight Hindustan Unilever (HUL) has begun the process of selling its real estate assets across the country, including Lever House, its landmark Mumbai headquarters.

The company has put several residential properties in prime markets such as Juhu and Santa Cruz on the block. Property consultant Cushman and Wakefield have been appointed to sell these properties.

Lever is likely to generate big gains on the transaction as many of the properties are in prime localities where real estate prices are already high.

Realty prices in Mumbai and Bangalore have soared over 50% in just one year. The residential property value in Juhu and Santa Cruz areas ranges between Rs 14,000 and Rs 20,000 per sq ft. The 30-acre Brookefields property is likely to be valued at anywhere between Rs 3,000 and Rs 4,000 per sq ft.

The Lever House is likely to fetch about Rs 25,000 per sq ft. Besides being a landmark structure, it has several facilities, including ample parking space. According to sources, several top corporates have set eyes on the marquee Churchgate HQ and the Brookefields property, where its foods division is headquartered.

HUL is also toying with the idea of joint development with property developers, or a complete sellout of its Bangalore property. The company is negotiating with various real estate consultants to finalise the strategy for the property which includes about 30 acres of land at Brookefields.

Hindustan Unilever is drastically cutting costs across operations and moving all employees to a single umbrella unit. The sale of prime property would not only generate large sums of money but also reduce operational costs, said a company observer. The selloff is part of a drive within HUL to unlock value from its real estate assets and invest it in its core businesses.

HUL has relocated its senior managerial staff from Brookefields to Lever House in Mumbai. The support staff will now move to leased premises in Bangalore. HUL is understood to have opted to pay higher rent (HRA) allowance to its employees. The cost incurred will be significantly less than owning prime real estate on company books.

A hefty compensation package has also been worked out for employees, especially in the top managerial cadre, sources said.

News from: The Economic Times

25-07-07	#1
dennis Unregistered User Posts: n/a	HUL puts prime real estate assets on block Consumer products heavyweight Hindustan Unilever (HUL) has begun the process of selling its real estate assets across the country, including Lever House, its landmark Mumbai headquarters. The company has put several residential properties in prime markets such as Juhu and Santa Cruz on the block. Property consultant Cushman and Wakefield have been appointed to sell these properties. Lever is likely to generate big gains on the transaction as many of the properties are in prime localities where real estate prices are already high. Realty prices in Mumbai and Bangalore have soared over 50% in just one year. The residential property value in Juhu and Santa Cruz areas ranges between Rs 14,000 and Rs 20,000 per sq ft. The 30-acre Brookefields property is likely to be valued at anywhere between Rs 3,000 and Rs 4,000 per sq ft. The Lever House is likely to fetch about Rs 25,000 per sq ft. Besides being a landmark structure, it has several facilities, including ample parking space. According to sources, several top corporates have set eyes on the marquee Churchgate HQ and the Brookefields property, where its foods division is headquartered. HUL is also toying with the idea of joint development with property developers, or a complete sellout of its Bangalore property. The company is negotiating with various real estate consultants to finalise the strategy for the property which includes about 30 acres of land at Brookefields. Hindustan Unilever is drastically cutting costs across operations and moving all employees to a single umbrella unit. The sale of prime property would not only generate large sums of money but also reduce operational costs, said a company observer. The selloff is part of a drive within HUL to unlock value from its real estate assets and invest it in its core businesses. HUL has relocated its senior managerial staff from Brookefields to Lever House in Mumbai. The support staff will now move to leased premises in Bangalore. HUL is understood to have opted to pay higher rent (HRA) allowance to its employees. The cost incurred will be significantly less than owning prime real estate on company books. A hefty compensation package has also been worked out for employees, especially in the top managerial cadre, sources said. News from: The Economic Times

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