High-net-worth individuals eye auction of bungalow adjacent to Bachchan residence
Deutsche Bank India is set to auction a bungalow located next to Bollywood superstar Amitabh Bachchan's residence, Jalsa, in Mumbai's upscale Juhu area. The property has attracted significant interest from high-net-worth individuals (HNIs), who primarily are directors of micro, small and medium enterprises (MSMEs). Hecta, a marketing platform for repossessed properties, has reported receiving at least 15 inquiries about the bungalow. The auction is scheduled for March 27 with a reserve price of Rs. 25 crore.
Bungalow's auction triggered by loan default
The auction comes as a result of borrowers defaulting on a secured loan amounting to Rs. 12.89 crore. The bungalow is being auctioned under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) of 2002. Deutsche Bank India had issued a demand notice in April 2022, asking the borrowers, Seven Star Satellite Pvt Ltd, to repay within 60 days.
Bungalow's market value estimated to be higher than reserve price
Local brokers estimate that a similar bungalow in the vicinity of Amitabh Bachchan's Jalsa would fetch around Rs. 35-40 crore in the open market. The bungalow up for auction has a carpet area of 1,164 sq. ft. and an open space of 2,175 sq. ft. Real estate experts suggest that properties sold via auctions by banks are often discounted, potentially offering prospective buyers a good deal.
Auction offers potential for discounted property acquisition
According to real estate experts, auctions conducted by banks often offer properties at discounted prices. This could present a lucrative opportunity for prospective buyers to acquire the bungalow at a price lower than its estimated market value of Rs. 35-40 crore. The auction, scheduled for March 27, is expected to draw significant interest due to the property's prime location and potential value for money.
