Jet Airways and Godrej Properties are in the process of signing a deal for developing Jet's land in the Bandra Kurla Complex area of Mumbai together, said two persons familiar with the matter.
The deal is expected to conclude within two weeks, they said.
Jet Airways had purchased a 2.5-acre plot from the Mumbai Metropolitan Region Development Authority in March 2008 for Rs 826 crore (Rs 8.26 billion) for developing its global headquarters. However, the airline did not go ahead with the plans and started negotiations to sell off the land.
The initial term sheet agreement between the companies is likely to allow Jet to retain 250,000 square feet as required by the MMRDA and the carrier will pay around Rs 320 crore (Rs 3.2 billion) for the retained portion. Jet Airways and Godrej Properties' profit sharing ratio is likely to be in the range of 45-50 per cent from the sales of the remaining 1.1 million sq ft.
Godrej Group Chairman Adi Godrej, in a concall, said, "On the Jet Airways deal... it is work in progress, negotiations are going on.
"As and when it is concluded, we will make an announcement. We need to get 10 million square feet in a short number of years in order to execute all our present and future programmes that we will take into account. Hopefully, we can exceed 10 million square feet per year in course of time."
When contacted, a Jet Airways spokesperson said, "We have received several proposals and we are looking into it. But nothing has been finalised yet."
