Adani Group Intends to Monetize its Non Core Real Estate Holdings

As per Mumbai real estate sources, the Adani Group is investigating the possibility of monetising portions of its real estate holdings that have been identified as non-core to its operations, according to two individuals with direct knowledge of the situation.

People say the group has already identified some of these assets and is in the process of adding more to the inventory. These will be sold based on the company's need for capital to invest in its new real estate ventures, they said.

To begin with, the group has resumed discussions regarding a potential sale of Inspire BKC, a commercial real estate project located on the outskirts of Mumbai's Bandra-Kurla Complex (BKC), which is home to a number of multinational corporations and Indian corporations.

Adani Group in negotiations to sell inspire BKC in Mumbai; listing additional assets for sale.

Discussions are currently underway with prospective buyers, including Brookfield Asset Management, and the Adani Group anticipates receiving a non-binding term sheet with a tentative valuation of 650 crore in the near future.

Inspire BKC has a total of 800,000 square feet of rentable space and is completely leased to tenants such as Novartis, Reliance Nippon Life Insurance, and MUFG Bank.

The 10-story structure was constructed in 2016 as part of a ghetto rehabilitation initiative. Since 2017, there have been rumours that the asset is for sale, with a number of global institutional investors reportedly interested in acquiring it.

In addition, the group has identified the real estate holdings of ACC Ltd and Ambuja Cements, which it acquired from Holcim last year, according to a second source.
This person stated that the group intends to monetize approximately 16 acres of ACC-owned land in Thane, close to Mumbai, and was anticipating up to 500 billion from the transaction. Adani Properties is the owner of a substantial portion of the Adani Group's real estate assets.

The move is part of the group's realignment strategy, and the funds raised will be used to meet the group's real estate ventures' investment requirements.

The group, which entered the real estate industry relatively late, is presently developing commercial and residential ventures in prominent real estate markets, such as western India. The group has also won the proposal to redevelop one of the world's largest slum colonies, Dharavi, with an initial investment of approximately 5,069 crore.

Eventually, the group will be required to invest 20,000 crore in the project. Twenty percent of this initial investment must be submitted to the Maharashtra government prior to signing the development agreement, and another twenty percent must be submitted upon submission of an integrated master plan.