In a significant development in Mumbai's real estate landscape, the iconic SoBo Central Mall, formerly known as Crossroads Mall, is set to go under the hammer on January 29, 2024. This auction, initiated by Canara Bank, aims to recover dues of ₹230.39 crore from the mall's owners, Bansi Mall Management Company Pvt Ltd. Let's delve into the details of this auction and its implications for the city's commercial real estate.
The Rise and Fall of SoBo Central:
Once a preferred destination for shopping and socializing in the late 1990s, Crossroads Mall, now SoBo Central, has faced challenges in recent years. The emergence of newer shopping options and the disruptive impact of the pandemic have turned this once-thriving mall into a non-performing asset, signaling a shift in Mumbai's retail landscape.
Financial Woes and Downgrades:
Crisil Ratings, in a notable move, downgraded Bansi Mall Management Company Pvt Ltd's ratings to "D" in August, with the remark "issuer not co-operating." This downgrade reflected the mall's financial struggles and the lack of cooperation from the management in providing essential information to the ratings agency.
Canara Bank's Auction Move:
Canara Bank, the lender associated with the property, has taken symbolic possession under the SARFAESI Act of 2022 to recover its dues. The auction, scheduled for January 29, 2024, has a reserve price set at ₹500 crore. This includes shops and commercial premises spanning over 1,07,691.99 sq ft, excluding the longstanding McDonald's outlet, a notable omission from the auction block.
Auction Details and Inspection:
Interested bidders have the opportunity to inspect the properties on January 20, gaining insights into the potential of this commercial space. To participate in the auction, a deposit of ₹50 crore as earnest money is required on or before the day of the auction. The properties on auction cover diverse areas, from the ground floor to multiple floors in different buildings, totaling 1,07,691.99 sq ft.
As Mumbai's first mall faces the auctioneer's gavel, the real estate market witnesses a pivotal moment. SoBo Central's journey from a bustling shopping hub to a distressed asset reflects the dynamic nature of the city's commercial landscape. Keep an eye on EstateUncle for more updates on this auction and other significant developments in Mumbai's real estate domain.
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