Diageo to sell office space in UB Tower to DivyaSree Group
Spirits major Diageo, which bought a controlling stake in Vijay Mallya’s United SpiritsNSE 3.78 %, will sell 30,000 sq ft of prime office space in the iconic UB Tower to DivyaSree Group in Bengaluru.
The deal, pegged at Rs 28,000 per sq ft, will be the highest ever fetched in the city’s office market. As part of the deal, the British alcoholic beverages company will sell and lease back the space to operate its office from the same premises after the transaction.
Bhaskar Raju, MD of DivyaSree Group confirmed the development.
“Diageo is in discussion with a Bangalore-based investor and is in the final stages of the deal closure. It can either be an entity level transaction or bought by an individual,” said people aware of the deal.
“This move is in line with our strategy to monetise non-core assets,” said a spokesperson from USL. Diageo Plc’s India arm owns five floors in UB tower and will only sell four floors as part of the assets disposal plan.