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In a strategic initiative, the Adani Group is on the move to liquidate portions of its real estate assets deemed non-core to its operations, according to insiders directly privy to this development. The goal behind this manoeuvre is to generate funds for investment into new real estate projects that the group has in its pipeline.
The conglomerate has initiated the process of identifying such assets and is continually expanding this list, depending on the need for funding future ventures, according to these sources. As part of this strategy, conversations have been rekindled around a potential sale of Inspire BKC, a commercial real estate project in the heart of Mumbai's business district, Bandra-Kurla Complex (BKC), an area known to house numerous multinational corporations and Indian corporate giants.
Negotiations are presently in progress with potential purchasers, among which Brookfield Asset Management is a key player. A non-binding term sheet with a tentative valuation of INR 7650 crore is expected to be finalised shortly, said a person familiar with the matter. Built in 2016 as a component of a slum rehabilitation scheme, the ten-storey standalone Inspire BKC offers a total leasable area of 800,000 square feet, fully leased out to tenants such as Novartis, Reliance Nippon Life Insurance, and MUFG Bank.
Moreover, the group has spotlighted real estate holdings of ACC Ltd and Ambuja Cements, acquired last year from Holcim, as potential assets for monetization. An approximately 16-acre plot in Thane, near Mumbai, owned by ACC, is being considered for sale, with the group anticipating a return of INR 7500 crore from this transaction.
This monetisation strategy is part of the Adani Group's larger realignment plan, where funds accrued will be channelled into financing the group's real estate ventures. Despite being a fairly recent player in the real estate domain, the group has made significant strides, developing both commercial and residential projects in prime locations, predominantly in Western India.
The Adani Group's recent successful bid to redevelop Dharavi, one of the world's largest slum clusters, represents an initial investment of around INR 5,069 crore. As the project evolves, the group will be required to invest a total of INR 20,000 crore, with an upfront payment of 20% to the Maharashtra government prior to the signing of the development agreement, and an additional 20% upon submission of an integrated master plan.
In conclusion, as part of its strategic financial realignment, the Adani Group is preparing to monetize non-core real estate assets. The funds generated from these transactions are projected to significantly bolster the group's investment capacity in its new real estate projects, reflecting the group's calculated approach to resource management and its continued ambition to reshape India's urban landscapes.
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