Adani Realty wins bid to redevelop 24-acre plot at Bandra Reclamation

Adani Realty has emerged as the highest bidder for the redevelopment of a 24-acre plot in Mumbai, beating Larsen & Toubro. Adani offered a revenue share of 22.7%, compared to L&T's 18%. The final decision will be made by the Maharashtra State Road Development Corporation (MSRDC) board next week. The land parcel has a potential development area of 45 lakh square feet and is valued at around INR30,000 crore ($4.1bn). Adani won a mandate in November 2022 to redevelop Dharavi, Asia's largest slum cluster, with a bid of INR5,069 crore.

Adani Realty, the real estate arm of Adani Group, has beat Larsen & Toubro to emerge as the highest bidder for the redevelopment of a 24-acre plot at Bandra Reclamation, located close to the Bandra-Worli Sea Link.

Mumbai, India - Feb. 16, 2024: Adani group has won the bid for 24 acre Bandra reclamation plot in Mumbai, India, on Friday, February 16, 2024. (Photo by Satish Bate/ Hindustan Times) (Hindustan Times)

Confirming this, Kailas Jadhav, joint MD, Maharashtra State Road Development Corporation (MSRDC), said, “Financial bids were opened yesterday, and the revenue share offered by Adani Realty was the highest at 22.7 % compared to 18% offered by L&T. Adani Group emerged as H1.”

The final decision will be taken by the MSRDC board next week, he added.

MSRDC had invited bids for the prime land parcel facing Mahim Bay and along the sea link approach road, which comprises a casting yard and the MSRDC office. This plot is allocated for commercial as well as residential use in the Development Control and Promotion Regulations 2034 and valued at an estimated cost of ₹30,000 crore. The land parcel has a potential development area of 45 lakh square feet. Residential prices in Bandra Reclamation are pegged at around ₹83,000 per square feet.

Several top developers, including Godrej Properties Limited, Runwal Group, K Raheja Corp, Oberoi Realty Phoenix Group, Lodha Group, and Mahendra Lifespaces attended the pre-bid meeting held last month, but the stringent eligibility criteria of ₹15,000 crore net worth by March 31, 2023, left only three in the race. Mayfair Housing was the third bidder, other than Adani Realty and L&T.

“Out of the three bidders, one was disqualified and between the two final bidders, the bidder who offered the highest percentage of revenue share to the MSRDC was declared H1,” Jadhav said.

MSRDC is looking at generating a minimum revenue of ₹8,000 crore from this process to fund infrastructure projects. In the first phase, the winning bidder will take up 6-7 acres, where the MSRDC office is located, for redevelopment. The bidder will have to relocate the MSRDC office and provide them with a fully furnished 50,000 square feet office within a five-km radius of its present office, according to the terms of the bid.

In November 2022, Adani Group won the mandate to execute a ₹23,000-crore project to redevelop Dharavi, Asia’s largest slum cluster, with a bid of ₹5,069 crore.