mumbai jet airways is close to sell the right to develop its 25 acre plot in the bandra kurla complex to godrej properties for rs 550 crore in a cashcumdebt dealgodrej properties is likely to pay rs 200 crore in cash and to absorb rs 350 crore of debt the money jet borrowed from hdfc bank in 2006 to buy the land from an arm of maharashtra government for rs 400 crore for obtaining the right to develop the land located in the bkc which has emerged as an attractive alternative to expensive south mumbai locations the deal is likely to be signed in a fortnight said a person close to the negotiations who did not wish to be namedthe deal has been structured so that both companies will share profits from the project the exact ratio of the profit sharing is under negotiations he added adi godrej chairman godrej properties declined to comment on speculation an email sent to jet airways went unansweredthe land purchase agreement makes it mandatory for jet to develop at least 60 of the total area of the plot for selfuse for five years jet is likely to keep at least 25000 sq ft area for its proposed headquarters jets share of profit will reduce if it wants to retain morejet has been trying to monetise the land since it suffered losses in the year ended march 2009 but a legal tussle with sahara airlines prevented it from selling the land and forcing it to go for a joint development deal with godrej said another person in the know the deal if it goes through will provide muchneeded respite to the countrys largest airline which has done operationally well in the june quarter of the current fiscal but remains concerned about its liability of rs 3200 crorejet had unsuccessful discussions with a consortium consisting of morgan stanely and oberoi constructions and bharti enterprises jet incurred a net loss of rs 961 crore in 200809 and rs 420 crore in 200910 according to the permissible floor space index or fsi jet can build a tower up to a height of 56 meter on the plot however jet has applied to the government asking for additional fsi the ratio of the total floor area of a building to the size of the land after wadhwa properties got permission to construct an 80 meterhigh tower in the same localitygodrej will pay rs 500 crore if the government grants additional fsi said the same person quoted above godrej can construct 1 million square feet of saleable area even if the project does not get the additional fsithe property prices in bkc are pegged between rs 30000 rs 40000 per sq ft godrej may earn rs 15001800 crore from the project said a real estate expert it will take three to four years for development