BILLIONAIRE Gautam Adani’s real estate unit has emerged as the top bidder to redevelop one of the largest housing projects in Mumbai at an estimated 360 billion rupees (S$5.5 billion), according to two sources aware of the development.
Adani Properties, an unlisted unit of port-to-power conglomerate Adani Group, offered the highest price for the Motilal Nagar Development Project in the western suburb of Goregaon, becoming the so-called “H1 bidder”, the two sources said, seeking anonymity as the details are not public.
The Maharashtra state government will shortly issue a Letter of Intent to Adani Properties, formally declaring it as the winner, they said.
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A spokesperson for the Adani Group declined to comment. Officials of Maharashtra Housing and Area Development Authority did not offer any comment.
The rehabilitation period for existing residents is seven years from the project commencement date for Motilal Nagar I, II & III, covering 143 acres (57.87 hectares), the sources said.
Adani Properties offered to hand over 0.397 million square metres against the base requirement of 0.383 million square metres under the Maharashtra state’s tender conditions, the sources said.
Rival Larsen & Toubro offered 0.26 million square metres, they said.
Adani Properties will be responsible for the entire redevelopment process, that includes design, approvals, construction, infrastructure development, and rehabilitation of 3,372 residential units, 328 commercial units and 1,600 slum tenements, the sources said.
The latest win is the second boost for the Adani Group as it is in the process of redeveloping Mumbai’s Dharavi slum, which is also the largest in Asia. The controversial plot of land that was the backdrop of the Hollywood film Slumdog Millionaire, is spread over roughly 620 acres of prime real estate. The project, already mired in legal wrangles and political protests, will need the consent of existing dwellers.
Source: BLOOMBERG
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