Standard Chartered Bank India, which has been in India since 1858, is planning to sell one of its iconic city offices.
Bids have been invited for the sale, and a commercial real estate service provider has been appointed to aid the process.
The property is located in the heart of the city’s central business district in the BBD Bag area, and is an iconic structure traced back to around 1850s.
When contacted, the U.K.-based bank’s spokesperson in India said: “We will be divesting our branch office at 19 NS Road in Kolkata”. The bank stressed that this is part of an ongoing effort to drive better efficiency and that will not impact its staff who will be relocated to a new office.
“At Standard Chartered, we are committed to growing our franchise and providing a world-class banking experience to our customers,” the spokesperson said.
The bank is, however, unwilling to share details on its expectations from this divestment. A total of 33,187 sq. ft. is on the block, and it occupies a corner position on two major roads.
The bank felt that it was suitable for corporates, banks, financial institutions, and retail and hospitality sectors.
Property consultants Cushman & Wakefield said that BBD was no longer a corporate destination and was regarded as the old business district. While a heritage tag on a building may fetch better prices, it would also invite restrictions on its reconstruction. “New banks may like this address or even an old economy business house may come forward to buy the property which would be a prestigious buy,” the executive said.
Across the road is the Chartered Bank Building, a listed heritage structure and an imposing although poorly maintained building. It was built in 1908, and has a domed central bay and had once housed the Standard Chartered Bank’s head office in the city. The bank has relocated this office, which has many tenants.
Standard Chartered plc the U.K.-based parent was, according to the bank’s website, the first foreign company to list in India (through the issuance of IDRs) in June 2010.
It has, of late, however, run into rough weather due to global and its internal challenges. The bank said it was undergoing a recast through which “the group was being reshaped to get back to sustainable profitable growth while delivering returns above the cost of capital”.
