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Kolkata's business spots on the block

Nilanjan Dey

KOLKATA, Dec. 12

IT'S a garage sale of the corporate kind. Top properties at Dalhousie, Kolkata's business district, are said to be on the block and several eager real estate hawks in the city are trying to get them.

Among the buildings that are said to be up for grabs are India Steamship House and Octavius Chamber. The two buildings, not far from one another, currently house a number of companies as their tenants. Confirmation, however, is not readily available.

The city's real estate circles maintain that Dalhousie could well throw up other prime picks in the not-too-distant future. This, they add, will help stretch Kolkata's property market a bit more. The local real estate scenario, currently subdued and star ved of large corporate deals, has only seen low-end happenings in recent times.

So who could be the possible buyers? Unlike Mumbai or Delhi, those willing to shell out money will not be multinationals or big corporate houses, as there are not enough of these groups trying to set up operations here.

According to sources, these are mostly local players - mid-sized but cash-rich corporate groups - which are willing to acquire assets in the city. Typically, each operates through a clutch of small finance and investment firms.

``The pattern of holding large property in the area may change'', a source said. For instance, there could be more joint ownerships, thanks to partnerships between two or more buyers.

On another front, it is hoped that such attempts could help ease out part of a serious problem: litigations over property. It is well known that ownerships of many of the buildings at Dalhousie are disputed, and cases have been pending at the courts for long. The new owners would like to get rid of these.

It is also well known that some of the biggest landlords in the business district are insurance outfits, particularly the Life Insurance Company.

The area also has a number of banks, both Indian and multinational, many of them operating out of rented premises. Real estate firms, sources said, will be most eager to try out some of the LIC property which, of course, are not on sale.

It is felt that a second `Parkomat' - the first multi-level parking location has just been built in the city - will help lift property prices in the area. Office space located close to such a facility will automatically fetch a higher rental.

Incidentally, Great Eastern Hotel, one of the area's best-known landmarks, may soon cease to exist in its present shape.

Accor, a French hospitality group, had earlier evinced interest in the hotel, which is mainly patronised by the West Bengal Government.

Elsewhere in the city, some deals are expected to take place on behalf of certain telecommunication companies. At this stage, however, there is no indication as to how much commercial space will be taken up by the telecom ventures. Still, the general out look on valuations of commercial locations remains weak.