Banks that had earlier loaned Kingfisher Airlines have served the carrier a legal notice which stated that they will attach the realty assets of the carrier. The airlines had submitted their realty assets as collateral to these loans.

As the lenders have not received the loans back, they have decided to send legal notice to Kingfisher Airlines.

Among the lenders, State Bank of India is the largest. SBI had lent huge amounts of money. The loans are still to be repaid.

Commenting on their plans to attach the realty assets of debt driven carrier, SBI’s Deputy MD Shyamal Acharya said that the bank has already sent the notice to the carrier.

Kingfisher Airlines Ltd is owned by Vijay Mallya. His properties also are expected to be attached. Besides this, the carrier’s parent company UB Group also may face attachment other than the other subsidiary firms of Kingfisher.

While speaking to the media persons, a senior bank executive confirmed the plan. He affirmed that the banks are moving ahead with their attachment plans.

Kingfisher Airlines’ realty assets include its office in Mumbai and a posh villa. The villa is in Goa. Besides these, some properties of UB Group and its chairman Vijay Mallya also are likely to be attached.

Indian Government had cancelled its license last year. After losing the license, it grounded in October 2012. The debt of the firm amounts to over $2.5 billion.

Besides the lenders and banks, the carrier has to pay huge amounts to its employees as well as to the Indian Government. The banks, with the permission of HC, had sold the shares of UB Group for recovering their funds.

SEB, which held the business park in an open-ended property fund, was facing redemptions and opted to liquidate the asset, the source said. Singaporean mobile phone and television operator StarHub, majority-owned by sovereign wealth fund Temasek Holdings, is the anchor tenant in the building.

The transaction comes as European financial institutions seek to raise capital through asset sales, with French banks such as BNP Paribas, Societe Generale and Credit Agricole all offloading portfolios of loans in a bid to deleverage.

SEB Asset Management is based in Germany and is a unit of Stockholm-based bank Skandinaviska Enskilda Banken. The company had been trying to sell the property for some time, the source said.

Blackstone, one of the world’s largest private equity and alternative-investment companies, has about $38 billion in real estate assets. It recently established an office in Singapore that is expected to house a private-equity real estate team. The company is among a number of global players such as KKR & Co. LP that are expanding in Southeast Asia and building teams in Singapore.

Blackstone and SEB officials declined to comment on the deal when contacted on Monday.