Real estate analysts say the Adani Group is quickly emerging as a “power hub” in Mumbai’s sizable real estate market, especially in the redevelopment sector. It secured its third significant redevelopment project in the city through the massive Motilal Nagar redevelopment project in Goregaon (West), which was overseen by the Maharashtra Housing and Area Development Authority (MHADA). This comes after its continued efforts to clear the decks for a 17-acre redevelopment project at Bandra Reclamation and start the Dharavi redevelopment project.
The Motilal Nagar project would be redeveloped by Adani Properties Pvt Ltd, an Adani Group company, as a construction and development agency (C&DA) on MHADA layouts designated Motilal Nagar-I, II, and III, according to sources. These parcels include slum areas, commercial buildings, and low-rise residential buildings. The project might cost up to Rs 36,000 crore, with a possible development area of about 75 acres.
Adani would build approximately 143 acres in total, giving MHADA, which is in charge of affordable housing in Maharashtra, 3.97 lakh square meters (4.27 million square feet) of built-up area. According to reports, Adani beat out Larsen & Toubro (L&T), a major player in the construction industry, which had offered to turn over 2.6 lakh square meters during the MHADA procurement process. 3,372 residential units, 1,600 eligible slum dwellers, and 328 commercial units are anticipated to be rehabilitated as part of the project.
The business establishments of Motilal Nagar-I, notably those related to the entertainment sector, are well-known. Given Adani Group’s emphasis on integration in its Mumbai real estate endeavours, the project’s inclusion of commercial areas is essential.
Township-style developments are undoubtedly a key component of Adani’s real estate growth strategy in Mumbai, as demonstrated by Dharavi, which features thousands of commercial buildings in addition to a large number of residential ones. A Mumbai-based real estate expert stated, “The integrated approach reflects the scale of projects the Adani Group is planning in Mumbai, including redevelopment projects in Andheri (West), Kanjurmarg, and other areas.”
According to industry experts, Adani’s capacity to manage major rehabilitation projects like Motilal Nagar is demonstrated by its completion of the Dharavi project, which may require an initial expenditure of Rs 11,000 crore. Through increased investment in rehabilitation projects throughout Mumbai’s major suburbs, Adani has also bolstered its workforce over time.
Delivering extensive redevelopment projects like Motilal Nagar is fully within the capabilities of a company managing a project as complex as Dharavi. Strong teams are a hallmark of successful real estate companies, and Adani Group has followed suit in recent years. Such projects, where developers must allot space to MHADA, tenants, and slum dwellers while also providing amenities and commercial infrastructure, were previously unfeasible for huge listed firms. The founder and managing partner of Wisebiz Realty, Chintan Vasani, stated that only big, publicly traded companies will be able to survive in this market.
Infrastructure improvements like the Mumbai Metro’s Yellow Line have helped the Motilal Nagar neighbourhood, which is situated along Goregaon’s New Link Road, gain popularity. Local brokers point out that the area’s real estate costs are still cheaper than those of other western suburbs. Though its monetisation plan will be closely watched, Adani is anticipated to use economies of scale in the project.
“The Motilal Nagar project’s topline plan calls for consistent delivery over a 20-year period, with the construction of commercial properties on the property as well. These transactions currently seem to be a component of an acquisition strategy. The Adani Group is focussing on economies of scale and has substantial financial support and liaising experience. Ritesh Mehta, Senior Director and Head-West, Residential Services and Developer Initiatives at JLL India, stated that the project’s monetisation plan is still an important aspect to keep an eye on.
Source: Money Control
